West Texas Intermediate crude prices recovered from lower levels ahead of the FOMC meeting overnight whereby the Energy Information Administration reported that US Crude supplies dropped by 3.1 million barrels for the week ended June 14 following two consecutive weeks of gains. On the other hand, the recent development has been positive with Xi and Trump both committing to a meeting at the G20 to discuss trade, which takes tariff increases off the table, for the time being at least.
As expected, Crude prices edged higher and reached the $55.73 resistance level after regaining traction during yesterday’s and today’s early session. The price is currently trading just below the $55.73 resistance level with the black gold being in an overbought state. We will keep focusing on the upside, however, we also expect a little correction in the price before we put the 56.69 resistance level on our watch.
Support: 55.06 / 54.42
Resistance: 55.73/ 56.69