Crude oil prices are continuing their surge breaking above the $72 level after OPEC confirmed it won't be looking at bringing prices down unless absolutely necessary. US sanctions over Iran are set to come into effect in November, which has been building a base of support underneath barrel costs at an increasing rate. US President Trump took on Twitter to demand the OPEC “to do something'” about rising prices. Production caps are not being hit currently by the OPEC and raising them will not have any effect in the short term. However, market participants are concerned about the gap that is going to be left after the sanctions take place and the supply crushing eventually the demand.
Another surge in price by Crude oil has seen it reaching the $72.73 resistance level but directly retreated below the $72.50 level forming a consolidation. A little bit of exhaustion has appeared on the momentum forming a divergence with the price which can also put more pressure on the price and that is why we will be focusing on the $71.60 support level on the short term.
Support: 69.51 69.10
Resistance: 70.33 70.58