Oil has recovered from the week's supply-fueled downside, but upwards momentum remains limited. Crude reached again the $69 level as tensions increased after Iran was seen operating military exercises near the Strait of Hormuz. However, US supplies are continuing to expand at a quicker pace than markets were expecting with a decrease in domestic demand.
The prices are recovering from overbought conditions after Crude picked up a strong pace surging from the $67 level till the $69 resistance level. We believe a simple consolidation just above the $68 level will determine if the bulls are going to take control again and this time break the $70 major level to the upside.
Support: 67.64 67.02
Resistance: 68.64 69.15