The price of oil dropped a little more than 1% after Trump and the UK discussed a "united diplomatic response" to the drone attack on Saudi Arabia, which is contrary to the belief that war could be averted. Saudi Arabia’s energy minister Prince Abdulaziz bin Salman said that Saudi Aramco has already restored 50% of lost production since the weekend disruption. The Wall Street Journal reported that the KSA is using its reserves to supply oil at pre-attack levels and the kingdom expects normal production of 9.8 million barrels a day by the end of September.
As expected, Crude prices edged lower during yesterday’s session printing a low of $57.67 per barrel before climbing back above the $58 level as of this morning. The price is currently trading just above the $58.26 support level with the momentum being held in the neutral zone. If the price keeps being supported by near support levels, we will most likely witness an upward move as we will focus especially on the $59.99 resistance level.
Support: 58.26/ 57.81
Resistance: 58.8/ 59.28