A combination of strong summer fundamentals and geopolitical risks have supported the price of Oil at the start of this week. During yesterday’s session, WTI prices added around 1.62% having travelled from a low of $55.73 to a high of $57 per barrel and continue to do so this morning. Ongoing supply concerns stemming from the Strait of Hormuz risk have underpinned the upside. The New York Times reported that Iran for the first time tied the British seizure of an Iranian oil tanker to the ailing nuclear deal yesterday, calling it illegal and a violation of the agreement. Meanwhile, other antagonistic headlines from today, Iran's commander says Iran and Russia to hold a joint naval drill in the Indian ocean in the near future, as tensions grow between Iran and West over the passage of oil tankers through Strait of Hormuz.
Crude oil prices surged during yesterday’s session and continue to do so this morning, adding more than 1.62% to its value as it broke above the $57 level. Price broke from its tight range and more specifically above the upper band of the flag as it trades now just below the $57.40 resistance level after finding the right momentum to surge. The price has more room to go before entering the overbought zone and the next level we will be watching is the $58.17 resistance level in the next 48 hours.
Support: 56.69 / 55.73
Resistance: 57.40/ 57.81