In recent days, traders have factored in the slower Chinese economic growth which created more worries about weaker demand for oil. The oil benchmark ended lower on Friday despite an effort from the bulls after printing a high of $54.1 per barrel. This morning, the markets are quiet, in anticipation of Brexit noise on an otherwise quiet data calendar. With a steep surplus on the horizon, Crude markets remain comfortable looking past tanker war fears, supply disruptions, and boiling geopolitical tensions.
Crude oil prices were on the rise during last Friday’s session, breaking to the upside and printing a high of $54.14 per barrel after picking up some momentum. The price is currently trading just below the $53.77 resistance level with the momentum being bullish but refraining to neutral territories. Selling should accelerate should price break the $53.26 support level where more sell stops could be triggered. We will be focusing on the downside with the $52.5 support level on our watch.
Support: 53.26/ 52.5
Resistance: 53.77/ 54.42