With the energy traders turning cautious ahead of the key data and events, WTI steadies near $54 during today’s early session. The black gold recently benefited from a surprise draw in the US oil stocks as per the private survey of the American Petroleum Institute. The inventory level went down by -0.812 million during the week ended on June 14 versus the previous addition of +4.850 million barrels. Traders may now await today’s official stockpile data from the Energy Information Administration report to confirm the industry reading. Other than a decline in inventory, renewed optimism surrounding the US-China trade deal has also pleased energy buyers off-late. At the geopolitical front, the US recently sent 1,000 additional troops to the Middle East in order to safeguard from Iran while Reuters flashed a news report conveying a rocket fired on a foreign oil company in Iraq.
Crude prices gained traction during yesterday’s session and broke to the upside back above the $54 level as per this morning. The price is currently holding still just above this level as the momentum is taking a breather. The RSI shows more room for the momentum to go before entering the overbought zone. We will be focusing on the upside with the $55.75 resistance level on our watch.
Support: 53.89 / 53.26
Resistance: 54.42/ 55.06