With the political tension between the US and Iran providing enough entertainment to the energy traders, WTI takes the bids around $58 per barrel during early this morning. As per the Bloomberg report, the US President Donald Trump said that he will impose major new sanctions on Iran Monday. President Trump abruptly called off strikes on Iran during last-week after the later shot down one of the former’s drone and complained the United Nations that they have witnessed unmanned US aircraft moving around their space. Elsewhere, latest statements from Saudi Arabia’s oil Minister Khalid A. Al-Falih indicate that the OPEC led alliance, generally known as OPEC+, is planning to extend the global output supply cut accord. Weighing on the quote could be the US-China trade tension that continues to challenge future energy demand.
As expected, Crude prices continued to edge higher during Friday’s and this morning’s session as they reached new highs at $58.2 per barrel. The price is currently pushing towards new highs as it trades just below the $58.21 resistance level. Even though the black gold is way overbought, the momentum is still bullish as it increases gradually. We will keep focusing on the upside and especially on the $58.8 resistance level.
Support: 57.81 / 56.69
Resistance: 58.21/ 58.8