Crude oil prices stayed calm during the first half of the day on Monday as lack of progress in US-China trade talks weighted on the sentiment. Commerce Secretary Ross said Chinese tech-giant Huawei was still on the Entity List. Meanwhile, Chinese news outlet South China Morning Post reported that Chinese President Xi refused to make a specific commitment to agricultural purchases despite Donald Trump's pressure during G20. However, escalating geopolitical tensions in the Middle East supported Crude oil prices by hinting at supply disruptions. On a different note, the black gold regained traction and surged during the second half of the day and continue to do so this morning after the US API weekly Crude oil stock declined to -8.129M barrels in July 5 from previous -5M barrels.
As expected, Crude oil prices surged above the $58 level during yesterday’s session and continue to do so this morning as bulls regained traction. The price is currently trading just blow the $58.8 resistance level and the momentum is still going strong with a lot of room to go before entering the overbought zone. We will be focusing on the upside as the $59.28 resistance level will be on our watch.
Support: 58.21 / 57.81
Resistance: 58.8/ 59.28