WTI takes the rounds to one week’s low during yesterday’s session, as oil traders regained momentum while waiting for fresh catalysts in the next session. The US markets’ close and a lack of major headlines kept highlighting the US-China trade war as the key negative for the prices. At the political front, the US, Japan and the UK are all on their way to send drones and troops to have a safe oil transit in the Strait of Hormuz. However, Iran seems shrugging off the news as it visits Russia and France to confront the global leader when needed. The New York Times conveys reports of Iranian diplomats visiting France, yesterday, to negotiate a deal of nearly $15 billion worth of letter of credit in hard cash in exchange of a return to compliance with the 2015 nuclear accord. Elsewhere, news also crossed wires that Russia and Iran hold secret talks to condemn the US provocation of the Middle East.
Crude prices continued to face pressure during yesterday’s session as they printed one week’s low at $54.33 per barrel before bouncing back up amid a strong support at the $54.42 level. The price is currently trading just below the $55.06 resistance level with a neutral momentum. Given the last move we will be focusing on the bulls as they attempt to bring back the price close to the trend line presented on the chart.
Support: 54.42/ 53.89
Resistance: 55.06/ 55.92