Although Crude oil prices struggled to push higher during Wednesday's session after the weekly EIA report showed a higher-than-expected buildup in crude oil inventories, heightened tensions in the Middle East provided a boost yesterday, lifting the barrel of West Texas Intermediate to a fresh 2-week high at $63.46. Yemen's Iran-aligned Houthi militia claimed responsibility for drone attacks on Saudi oil pumping stations and Saudi Arabia accused Iran of ordering these attacks, reviving concerns over supply disruptions in the region. Now today's Baker Hughes rig-count report will be the next data to watch.
Crude oil prices Continued to edge higher in as the momentum regained traction allowing them to surge past the $62.75 support level and reach a high of $63.46. The 2% upsurge is slowing down at the momentum as the price is recovering a bit as they trade just above the $62.75 support level. We expect the recovery to extend a little bit more before we focus again on the upside, that is why we will be be watching the $62.23 support level.
Support: 61.97 / 61.31
Resistance: 62.75 / 63.43