Rumors concerning the US readying an air strike over Iranian targets in Syria joined previously upbeat sentiment for energy traders, based on more than forecast draw in the US Crude Oil Stocks. As a result, WTI trades near $60.50, fresh 7-week high during today’s early session. As per the US Energy Information Administration’s Crude Oil Stocks Change for the week ended on July 5, the inventory level fell behind -3.081 million barrels to -9.499 million barrels. After the inventory data, rumors broke that the US is ready to strike some part of the Iranian targets in Syria. Although the rumors failed to portray any strong market reaction immediately, confirmation of the same can add further pessimism surrounding the US-Iran relations that have gone bitter off-late. The Middle East nation has openly shown readiness to avoid global nuclear deal and the US is trying best to compress the Hassan Rouhani-led economy.
Crude prices surged during yesterday’s session as expected and continue to do so this morning and clings a fresh 7-week high at $60.81 per barrel after bull traders fond the right traction. The price is currently holding near the top just above the $60.55 support level despite in the deep overbought zone. We expect the continuation of the upsurge after a little breather and the next level we will be watching is the $61.05 resistance level.
Support: 60.55 / 60.24
Resistance: 61.05/ 61.31