The price of the West Texas Intermediate surged nearly 20% at the start of Monday’s trading in a reaction to the weekend news that Saudi Arabian oil facilities lost 50% output due to the drone attack, which Houthi took responsibility for. The US, later on, claimed that Iran was behind the attack, which was follow-on supported by news reports showing the attacks were conducted through Iranian measures. However, Tehran denied the allegations while turning down any possibilities of a meeting between the US President Donald Trump and Iranian President Hassan Rouhani. On a different note, Iran seized a vessel for allegedly smuggling 250K liters of diesel fuel to the United Arab Emirates, as per Iran’s semi-official news agency ISNA. While buyers are gradually booking their profits from the recent rally, the American Petroleum Institute’s weekly crude oil stock report for the US will offer fresh insights for near-term trading direction.
As expected Crude prices edged lower to close the gap before firing back up during yesterday’s session to print a fresh 3-month high $63.33 per barrel. The price is currently trading just above the $62.23 support level as the momentum pulls gently from the overbought zone. However, the continuation of the upward move looks imminent as bulls are still in control. We will be focusing on the $63.44 resistance level.
Support: 62.23/ 61.97
Resistance: 62.64/ 62.87