Tensions in the Middle-East and the upcoming G20 summit keep driving oil prices higher extending the series of higher highs and higher lows. Oil prices are now at a 1-month high gaining almost 1.8% yesterday mainly driven by the American Petroleum Institute (API) data showing a fall in U.S. crude inventories. U.S. crude stockpiles fell by 7.5 million barrels in the week ended June 21 to 474.5 million, compared with analyst expectations for a decline of 2.5 million barrels. However, OPEC’s most recent Monthly Oil Market Report (MOMR) highlights slower consumption for 2019, reflecting in a way the uncertainty over near-term direction of oil.
Crude oil prices headed to the upside during yesterday’s session and violated the $58.8 resistance level to the upside after regaining some traction. The price is currently trading just below the $59 level after re-entering the overbought zone and still has more room to go. We will be focusing on the upside, especially the $59.99 resistance level before we expect a correction in the prices.
Support: 58.8 / 58.21
Resistance: 59.28/ 59.99