The price of a barrel of Crude oil printed new highs during Friday’s session at $56.78 before easing back a bit early this morning. Russia’s energy ministry said on Friday it is continuing close cooperation with the Organization of the Petroleum Exporting Countries and non-OPEC oil producers to enhance market stability and predictability, according to Reuters. The alliance, known as OPEC+, entered into a deal in January to cut output by 1.2 million barrels per day to support the market. The pact is scheduled to run till March 2020. Russia's comments are likely helping Crude oil to hold around around the highs after breaking to the upside last week. Further, a statement from the United States and China that they are closing on a partial trade deal could be supporting prices. The upside, however, is being capped likely due to comments by US Energy Secretary that global markets are flooded in crude and the record US production looks set to continue.
Crude oil prices continued to head to the upside during Friday’s session printing a new high at $56.78 per barrel before easing down a bit this morning after entering the overbought zone. The price is currently trading just above the $56.27 support level with the momentum still bullish. However, we will be focusing on the downside amid a divergence between the price and the momentum and we will be focusing on the $56 handle.
Support: 56.27/ 55.92
Resistance: 55.79/ 57.4