Despite intensifying trade disputes between China and the US, Crude oil gained during early today's session amid news that two Saudi Arabia oil tankers were allegedly attacked. Prices received some support following reports that Saudi Arabia said two of its oil tankers were sabotaged off the coast of the United Arab Emirates in an attempt to undermine the security of Crude supplies. Meanwhile, news on the Sino-US trade front made headlines again. In response to the US's decision to raise the tariff on $200 billion worth of Chinese goods from 10% to 25% last Friday, Beijing announced earlier in the day that a tariff hike on $60 billion US goods such as frozen vegetables and liquefied natural gas would become effective on June 1. The intensified trade war between the world’s two biggest economies is sending prices of most risk assets lower.
Crude oil prices surged above the $63 level during yesterday's session but quickly lost traction and retreated back towards the $60.5 area. The price is currently testing the $61.31 resistance level with a kind of bearish momentum as the RSI points out. Despite the upside potential that the black gold showed us yesterday, we will keep focusing on the downside with the $60 support level being on our watch
Support: 60.97/ 60.58
Resistance: 61.55/ 61.97