Oil prices have been on the back foot since July but have recently found some traction and bulls are stepping in to protect the $55 handle. The US Justice Department is looking to seize the Iranian tanker that had previously been held by the UK remain in the shadows of risk sentiment, which remains the primary driver for energy prices. However, Concerns over oil demand have become the driving factor in oil markets with recent escalation in trade tension making the sentiment more bearish. But, fundamentals are constructive, with the market tightening in H2 2019. Supply constraints persist, and Saudi Arabia’s commitment to further restraint is highly supportive.
Crude oil prices traded side ways during yesterday session after being capped by the $55.06 resistance level and the $53.89 support level. However, the prices made a recovery and are now trading above the $55.2 level. A candle close above the 55.06 support level with a momentum that is getting picked up again, we will be focusing on the upside especially the $55.92 resistance level.
Support: 55.06/ 54.42
Resistance: 55.92/ 56.27