With the recent UN report adding Saudi Arabia into the US and Iran dominated geopolitical tussles, WTI took the bid around 3-week tops during yesterday’s session. While previous news reports of the US adding 1,000 troops to its Middle East forces and Iran gunning down the former’s drone were already challenging oil supplies, the latest report from the UN blaming Saudi Arabia for the death of the US reporter Jamal Khashoggi indicates renewed tension between the US and Saudi Arabia. On the other hand, Iran’s envoy to the United Nations mentioned that the US unmanned aircraft was spotted in their airspace and the nation will act to safeguard its interest if the US disturbs it. Although political plays surrounding geopolitics could keep directing the black gold’s moves, Baker Hughes Oil Rig Count for the current week could offer additional details to predict near-term oil sentiment. The rig count previously dropped to 788.
As expected, Crude prices continued to edge higher during yesterday’s session hitting a 3-week high at $57.75 per barrel before taking a breather this morning. The price is currently approaching the $56.69 support level as the black gold tries to retreat from the overbought zone. Even though the move looks overextended we will keep focusing on the upside and this time the $58.21 resistance level will be on our watch.
Support: 56.69 / 55.73
Resistance: 57.81/ 58.21