Tuesday, May 21, 2019

USOIL - 21 May 2019


Fundamental Highlights

With the on-going geopolitical tension between the US and Iran continues to entertain energy buyers, WTI is taking the rounds near yesterday's highs during today's early session. News reports concerning the “rudimentary rocket” fire near the US embassy in Iraq and the US President Donald Trump’s threat to Iran reversed the previous decline of the black gold on Monday. Adding to the strength was global oil producers' accord to extend output cut agreement for the rest of the year. On the other hand, the US recently scaled some of its restrictions on China’s Huawei to safeguard customers from the homeland. This could be considered as an extra point for optimists to watch. Looking forward, a weekly release of the US oil stock by the API will in the spotlight today.

Technical Analysis

Crude oil prices returned to its march to the upside this morning after edging lower during yesterday's session. The price is currently hovering around the $63.5 level with the momentum still bullish. No sign of exhaustion is flashing so far, the overbought zone is still far and the price has more room to go. The next level we will be watching is the $64.07 resistance level.

Support: 63.43 / 62.75
Resistance: 64.07 / 64.48

Chart (H4)