WTI oil maintains a firm tone on Wednesday following reports that Saudi Arabia is comfortable with higher oil prices. On the other hand, US inventories declined by 2.1M barrel from last week versus an expected 2.7M barrel which somehow gave support for the prices. Adding to this, Russian oil firms are seeking alternatives to the US Dollar by accepting payments for barrels in Euros instead, which of course will negatively affect the greenback against Crude prices if they proceed with it.
As expected, US oil prices jumped higher on Wednesday after regaining some momentum. The price broke above the $70.5 resistance level and managed to consolidate above it for it later to reach the $71.5 level. Currently, the price is still above the $71 level with a declining momentum but we expect it to regain some and then we will be focusing on the $71.6 resistance level.
Support: 69.51 69.10
Resistance: 70.33 70.58