Uncertainty surrounding the US-China trade deal and recently weak US manufacturing data triggered the energy benchmark’s pullback moves to $57 during yesterday’s session. Although the Iranian Energy Minister Bijan Zanganeh denied reports of any fall in the nation’s oil exports, Reuters cited industry sources to convey that there was nearly a decline of 300,000 barrels per day into the level so far during June. On the other hand, the US and Chinese sources were all on wires during early Asia conveying the likeliness of the Trump-Xi meeting at the sidelines of the G20. Though, no media reports favored expectations of a positive outcome from either the US President Donald Trump or his Chinese counterpart Xi Jinping. Moving on, weekly announcement the American Petroleum Institute’s (API) US oil stocks could offer immediate guidance to the price sentiment.
As expected, Crude prices edged lower during yesterday’s session after a long overextended move which began last week. The price currently regained traction as it hovers around the $57.81 support level despite fleeing from the overbought zone. We will keep focusing on the upside keeping the potential divergence between the price and the momentum on watch. The next level to watch is the $58.8 resistance level.
Support: 57.81 / 56.69
Resistance: 58.21/ 58.8