- WTI remains on the back foot below 200-day SMA after despite taking a U-turn from near-term rising trend-line.
- The US readies military for Saudi Arabia, Iran sacked by the Kingdom.
Saudi Foreign Minister’s threats to Iran go unnoticed as WTI stays under pressure around $56.60 during the Asian session on Friday.
Saudi Arabia’s Foreign Minister Ibrahim Abdulaziz Al-Assaf recently fired verbal shots against Iran while terming it as a rogue terrorist regime. The Kingdom diplomat is also spotted by the Sky News as signaling indirect war threats to Tehran. Though, energy traders pay little heed to the news as restoration of oil and gas output from Saudi Aramco gets more attention when the broad US Dollar (USD) strength is exerting downside pressure on commodities.
It should also be noted that the energy benchmark turned blind eye to the latest headlines concerning US-China trade talks resumption.
The black gold earlier recovered on the news that the US is planning to deploy major military equipment to Saudi Arabia.
Moving on, numbers from the Baker Hughes’ weekly US Oil Rig Count, prior 719, might occupy the data-line whereas trade/political news could keep offering the background music.
Technical Analysis
Although a rising trend-line since early-September, at $55.80, limit nearby declines, buyers will look for a sustained closing beyond 200-day simple moving average (SMA) level of $56.85 in order to target $57.50 and July-end top nearing $58.80. Additionally, a seven-week-long ascending trend-line around $54.85 could question sellers below immediate trend-line support.
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