West Texas Intermediate Crude prices printed a new weekly high at $54.78 per barrel as Canadian Prime minister Trudeau was elected for another term. The Canadian Dollar, linked to oil price fluctuations increased, also garnering support from a healthy Bank of Canada Business Outlook. However, oil prices then retreated slightly as demand-side concerns were fueled by talks of a likely production cut by the members of OPEC+. Also exerting downside pressure is the receding geopolitical tension in the Middle East. The latest tweet from the United States’ President Donald Trump, which marks Syria, should be quoted for the reference. Additionally, doubts over the US-China trade deal becomes an extra worry for the Oil bulls.
Crude oil prices are still trading in the same range since last week despite printing a new weekly high at $54.778 per barrel. The price is currently trading just below the $54.42 resistance level with the momentum being relatively bullish. We will be focusing on the upside at this point if the price succeeds to maintain its momentum and we will be watching the $55.06 resistance level closely.
Support: 53.77/ 53.26
Resistance: 54.42/ 55.06