During Thursday's late session, the energy benchmark dropped following US President Donald Trump’s tweet: “Very important that OPEC increase the flow of Oil. World Markets are fragile, the price of Oil getting too high”. However, prices gradually recovered afterwards as traders might have recollected that the OPEC had previously ignored President Trump's tweets to push for supply boost. On the other hand, Venezuela is already witnessing difficulties producing and selling its energy products as a power outage at home and stiff sanctions from the US play their role. Traders may now concentrate on Baker Hughes US oil rig count together from Beijing as the US delegates are on a two-day visit to China for trade negotiation.
Crude prices edged lower during yesterday's late session but quickly recovered this morning as bulls are aiming to push them above the $60 handle. The price is currently trading just below the $59.99 resistance level as the momentum is on the rise with a lot more room to go. We will be focusing on the $60.76 resistance level.
Support: 58.9 / 58.02
Resistance: 59.4 / 59.99