WTI crude struggles around $54.00 early this morning as investors moved back to supply glut concerns. The WTI prices remained positive on Wednesday after the EIA inventory report came out. Venezuelan sanctions and supply outages in Canada and Mexico also helped in keeping prices up.
As expected, Crude prices found support at the $53 level and then surged back up above the $53.89 resistance level but could not settle above it. We expect the price to consolidate in a very tight range between the $53 and $54 levels and eventually break to continue the uptrend after gaining back traction.
Support: 53.89/ 53.26
Resistance: 53.26/ 52.36