Crude prices ended yesterday’s session on a positive note before retreating this morning amid today’s US 4th of July holiday. On the geopolitical front, Iran’s president who warned European partners in its faltering nuclear deal Wednesday that Tehran will increase its enrichment of uranium to “any amount that we want” beginning on Sunday, will be expected to antagonize the Trump administration even more, following Trump's rhetoric today. He has warned Iran that threats “Can Come Back To Bite”, in an escalation of tensions between Washington and Tehran. With OPEC+ keeping the taps shut, rising Middle East geopolitical risks and sharp reductions in Iranian export flows, along with lower US inventories, will all contribute with the black gold's price action.
As expected, Crude prices edged higher towards the 57.4 resistance level during yesterday’s session but quickly retreated during today’s morning session and continue to do so now amid the continuation of the correction. The price is currently trading around the 56.69 support resistance level as the momentum re-turned to be bearish. We will be focusing on the downside especially the 55.73 support level.
Support: 55.73 / 55.06
Resistance: 56.69/ 57.4