Crude oil is set to test and break the $70 area after supply concerns are hitting oil markets as Saudi Arabia diverts shipping lines away from a popular target for pirates and thieves. On the other hand, Crude inventories declined by 6.1 million barrels from last week versus an expected decline of 2.6 million barrels. While we wait for the Saudis to confirm when the halt is going to be unlocked, we expect oil prices to inflate more over the next days especially with a less bullish US Dollar.
It seems like a move towards the $70 resistance level is set to happen after the price broke the upper trend line to the upside. Momentum is back and will help the price to break above the 70 dollar mark and head towards the $70.70 resistance level but be careful from overbought conditions.
Support: 67.72 66.88
Resistance: 69.30 70.80