Crude oil price are on the rise this morning with the US President Donald Trump going harsh on Iran and the OPEC+ group holding support for further production cuts. While 14-month low of the US oil rig counts signaled likely energy supply shortage in future, the OPEC+ added further fuel to supply crunch expectations as the group agreed to continue limiting production levels at a Joint Ministerial Monitoring Committee meeting. Further on the bullish side was the US-Iran tension that has been more serious off-late after the Sky News reported that a “rudimentary rocket” has been fired into the Green Zone near the US Embassy in Baghdad, Iraq. Given the lack of economic data on the calendar, energy traders may keep concentrating on macros for fresh impulse. Among them, the US-Iran and the US-China news headlines may grab more attention.
Crude oil prices continued their march to the upside this morning after edging lower a bit during Friday's late session. The price is currently hovering around the 63.6 level with the momentum still bullish. No sign of exhaustion is flashing so far, the overbought zone is still far and the price has more room to go. The next level we will be watching is the 64.07 resistance level.
Support: 63.43 / 62.75
Resistance: 64.07 / 64.48