Crude oil prices came under strong selling pressure during yesterday’s session as the disappointing data from the US revived concerns over a recession and its potential negative impact on the global growth, which is expected to weigh on the energy demand. However, political tension surrounding Iran and Hong Kong keep the black gold buyers happy as of this morning. Recently, the US levied fresh sanctions on Iranian organizations like Space Agency, Space Research Center and the Astronautics Research Institute. In retaliation, Iran warns of further stepping back from the nuclear deal if the EU takes the US view and delays the action concerning expectedly $15 billion credit lines. Furthermore, comments from Russian energy minister shows the nation’s readiness to keep extending global production cut accord with the Organization of the Petroleum Exporting Countries. Investors will now look forward to weekly industry oil stock reports for fresh impulse while trade and political news headlines could keep offering intermediate moves.
Crude prices continued to face pressure during yesterday’s session as they printed one week’s low at $52.84 per barrel before bouncing back up amid a strong support at the $53.26 level. The price is currently trading just below the $54.42 resistant level after the momentum knocked on the oversold zone’s door. The bearish pressure is still there and we will be focusing on the downside especially the crucial $53.26 support level.
Support: 53.89/ 53.26
Resistance: 54.42/ 55.06