The energy benchmark rose nearly 2.0% on Tuesday as Venezuelan unrest feeds global supply uncertainty. Buyers gave little importance to the weekly API crude stocks build as recent news by CNBC signaling geopolitical tensions in Venezuela between the US and Russia. Meanwhile, Oil inventories increased 1.9 million barrels in the latest week compared to the depletion of 2.13 million barrels registered earlier according to the API.
Oil prices erased all the losses as they're back challenging the $60 handle. Prices rose during yesterday's session and as if this morning they are trading just below the 59.99 resistance level. We also notice the downtrend in the momentum as we can see on the chart which can trigger a reversal if the price does not align with it. We will be focusing on the 58.9 support level.
Support: 59.4 / 58.9
Resistance: 59.99 / 60.76