In an up and down daily sessions last week, the black gold extended its sideways trading range intact this morning despite some heavy developments the US and Iran geopolitical tension. The sentiment around the commodity remains underpinned by tighter global supplies amid ongoing OPEC cuts, the US sanction on Iran and a drop in the US crude stockpiles. The latest US EIA data showed an unexpected drop in the US crude inventories by 4 million barrels in the week to May 3rd. Any development regarding the US-China trade feud and between the US and Iran escalating tensions will determine the next direction for the prices.
Crude oil prices are still trading in the same range with the $61 level being constantly tested and the upper range narrowing down. The price is currently hovering just below the $62 resistance level but the momentum seems to be building up a bit more so a break to the upside seems more probable to happen. We will be watching the $62.75 resistance level in case of a breakout.
Support: 60.97/ 60.58
Resistance: 61.55/ 61.97