WTI contract for March delivery is down by 0.11% to $97.39 before the release of U.S. Manufacturing PMI.
Institute of Supply Management will release Manufacturing PMI at 0300 GMT. The index is expected to fall at 56.2 from previous 57.0. The index has shown expansion for last 7 months consecutively.
Expectation of a little change may not leave high impact on crude oil prices. But if the index falls below expectation then we may see downside pressure on this commodity. Prices have already fall on concern of sluggish demand from China, Second largest oil importer.
At price near to $98.60 there are strong technical resistance points. High prices may not sustain as fundamentals at the globe are not supporting. On 5th Feb Energy Information and Administration will release inventory data. Last week the inventory rose to 6.4million barrels highest since 21st Oct, 13.
We may see volatile movement in crude oil prices after the data release as U.S. is the largest oil consumer.