Crude oil prices settled above the $55 level to gain more than 3% for the week, the highest level since November 21. The Organization of the Petroleum Exporting Countries output fell in January by the largest amount in two years, according to a Reuters survey. Furthermore, Bakers Hughes data released on Friday showed the operating oil rigs in the US fell to their lowest in eight months. On the other hand, the US labor market is still running hot, while the anemic wage growth justifies the Fed's recent dovish turn. The Dollar, therefore, could remain on the defensive, helping oil set new multi-months highs.
Crude oil prices pushed above the $55 and this time succeeded to settle above it as expected. The price is currently hovering above the $55.25 support level and looking to break the $56 level to the upside. Our main focus will be for the upward move to continue with overbought conditions yet to come. The next level we will be focusing on is the $56.69 resistance level.
Support: 53.89/ 53.26
Resistance: 55.25/ 56.69