Despite witnessing some key headlines from Iran and Saudi Arabia, WTI price fails to register much momentum as it trades nearly flat this morning. While doubts surrounding any breakthrough from the US-China trade meeting in October seem to weigh on the energy benchmark, news that Foreign Ministers of Kuwait and Iran discussing ways to de-escalate tension in the Middle East region exerted additional downside pressure on the prices. However, later in the day, headlines from the Saudi State TV reporting military operations by the Saudi-led alliance in the north of Hodeidah, in Yemen, pushed back the prices of oil into positive territory. It should also be noted that, while recently erupted political tension signal WTI upside, trade pessimism and increasing inventory numbers from the API and the EIA might exert downside pressure on the black gold going forward.
Crude oil prices failed to move in either way during yesterday’s and today’s morning session as the price stayed nearly unchanged in the absence of any dominating momentum. The price is currently hovering in a neutral zone below the $58.80 resistance level. This might suggest that a relatively big move is going to happen one way or another depending on any fundamental catalyst today. However, unless the $58.80 resistance is breached, we will be focusing on the downside with a most likely test of the key important support zone between $57.81 and $58.26.
Support: 58.26/ 57.81
Resistance: 58.8/ 59.28