The energy benchmark has recently been recovering amid trade positive headlines from the US and China while depleting US inventory levels adds strength to the momentum by trading around the $57 level this morning. Further, Baker Hughes US Oil Rig Count dropped for the third consecutive week, to 738 from 742, on Friday. At the political front, Iran warns of fresh violence in Afghanistan while the Taliban threatened the US to lose more lives if it calls off peace talks. Also, Iran is going further away from the Nuclear Deal saying that the EU has failed to fulfill its commitments. Furthermore, Federal Aviation Administration issued temporary flight restrictions to US flights entering Bahamian airspace in hurricane Dorian's affected areas. With no energy-related data on the card, black gold traders will keep following trade and political headline for fresh impulse.
Crude oil prices rose during Friday’s session breaking above the trend line presented on the chart and settling above it after gaining momentum. The price is currently trading around the $57 level with the RSI pointing towards the beginning of an upward move. On a larger time frame, such as the daily chart, we will focus on the upside as long as the price remains above the trend line.
Support: 56.79/ 56.27
Resistance: 57.4/ 57.81