With the likely extension in global supply cut accord and Iran moving further away from nuclear commitments, WTI prices confronts a short-term set back as they trade below the $53 mark. Saudi Arabia’s Energy Minister Khalid al-Falih was recently quoted that the Organization of the Petroleum Exporting Countries and its allies, popularly known as OPEC+, are likely to extend the global supply cut agreement when they meet in July. Other than that news from Iran and a slight reduction in the weekly release of the US oil rig counts also helped the black gold to remain strong. Iran’s Tsanim news was spotted mentioning the country’s readiness to step further back from the nuclear deal and increase its stocks of enriched uranium and production of heavy water. Moving on, US Baker Hughes weekly release of the US oil rig counts dropped 1 rig to 788 during the week ended on June 14.
Crude prices are still halting their march to the upside this morning the $52.5 level is being too stubborn. The price is currently hovering around it with a more neutral momentum. However, after last week’s double bottom, we will keep focusing on the upside and the next level we will be watching is the $53.25 resistance level.
Support: 51.83 / 50.87
Resistance: 52.5/ 53.87