Crude oil prices traded higher during yesterday's session as escalating tensions between US and Iran triggered fears of supply disruptions. On Friday, Washington announced that it will deploy more troops in the middle east, sending the black gold higher. Supply reductions by OPEC, escalating US-Iran tensions and drop in Russia’s oil output indicate that the price is well supported. Even so, oil may remain under pressure if other riskier assets post losses on trade tensions.
As expected, Crude oil prices edged higher during yesterday's session reaching the 59.28 level before facing a strong resistance from it. The price is currently trading just below it after failing to break above it, and the momentum started to slow down a bit but still in a bullish trajectory. We will keep focusing on the upside and the level to watch will be the 59.99 resistance level.
Support: 58.02 / 56.69
Resistance: 59.28 / 59.99