Despite the International Energy Agency on Friday lowering its forecast for 2019 demand growth, the West Texas Intermediate travelled higher between a range of $52.40 and $54.89, ending on Wall Street 2.92% in the green to around $54.35 on signs that OPEC oil ministers are committing to market balances. However, with the Japanese markets off and no major data or events scheduled for publishing from rest of the world today, WTI prices fail to extend the previous run-up. The price positive aspects are latest comments from Iran’s Revolutionary Guard’s navy Commander Alireza Tangsiri who warned of war if Israel marks a presence in the Persian Gulf. The statement rolled out after Israel said to support the US in safeguarding the global oil transit in the Gulf of Hormuz.
Crude oil prices surged during Friday’s session towards the $54.5 resistance level which coincides also with the trend line represented on the chart and settled just below it. The price is currently holding just below the $54.42 resistance level with a neutral momentum. We expect a consolidation in that area with the $53.89 support level on our watch.
Support: 53.89/ 53.26
Resistance: 54.42/ 55.06