Crude oil prices gained traction during yesterday’s session and rose to fresh five-day high at $56.44 per barrel as of this morning. The Trump administration on Monday announced that it decided to delay the ban on Huawei for 90 days to revive hopes of the US and China making forward progress in next round of trade talks in Washington next month and also eased fears over dismal energy demand outlook to provide a boost to crude oil prices. In the meantime, reports of Yemen's Houthi forces attacking a Saudi oil facility using drones and causing fire at a plant, caused a tension in the Middle-East and supported crude oil rebound by hinting at possible supply disruptions.
Crude oil prices picked up momentum during yesterday’s session and continue to do so this morning after climbing to a five-day high at $56.44 per barrel. The price is currently trading just above the $56.27 support level with the RSI pointing towards slow progress in the momentum. The black gold has still potential to go higher but the pace is getting slower. We will be focusing on the $56.79 resistance level before we turn back to focus on the downside.
Support: 56.27/ 55.92
Resistance: 56.79/ 57.40