The black gold has been resilient to the Dollar's upside pressures that had otherwise weighed on the broader commodity market midweek. News that Saudi Arabia plans to slash shipments to US refiners and prevent the buildup of American Crude stockpiles has led prices to move higher above the $53 handle but still could not settle above it. On top of that, a report from Reuters says that Oman announces 2% production cut as of January for an initial period of 6 months so that should ease the pressure also on Crude prices.
Oil prices are still trading sideways after failing to settle above the $53 level after breaking above it. Price action is still limited in the pattern presented on the chart with the price hovering just below the upper band. Once it is broken to the upside, we will have the confirmation that the price will move to a higher area and the 54.99 level will be our main focus.
Support: 50.86 / 50.17
Resistance: 51.98 / 52.53