Despite witnessing more than expected reading of the weekly US crude oil stock, the energy benchmark stretched its latest recovery forward as tensions between the US and Iran dominate. The US recently called off its non-emergency staff from Iraq smelling an attack from Iran. However, Iran’s foreign minister stated that the nation remains committed to the nuclear deal, which in turn turned some pessimism off the mark. However, the US President recently announced executive order barring foreign companies from telecommunication sector on a national security basis. The same is likely to adversely affect Chinese giant Huawei and may create further divide amid the world’s two largest economies keeping the prices of oil capped.
Crude oil prices are back on the rise after picking up some momentum and printing highs during today's morning session of $62.53. The price is currently hovering just below the daily highs, however a divergence has emerged between the momentum and the price. That is the reason why we will be focusing more on the downside especially the $61.31 support level.
Support: 61.97 / 61.31
Resistance: 62.75 / 63.43