- Geopolitical tension between the US and Iran joins recent relief to China’s Huawei.
- Private inventory data will be observed for fresh impulse.
With the on-going geopolitical tension between the US and Iran continues to entertain energy buyers, WTI is taking the rounds near $63.40 during early Tuesday.
News reports concerning the “rudimentary rocket” fire near the US embassy in Iraq and the US President Donald Trump’s threat to Iran reversed the previous decline of the black gold on Monday.
Adding to the strength was global oil producers’ accord to extend output cut agreement for the rest of the year.
President Trump was again on wires a few hours back and reiterated his warnings to Iran if it does anything wrong. However, Mr. President remained ready to talk to the Middle East nation when it is ready, which in-turn signaled a bit mild tone from the earlier fury.
On the other hand, the US recently scaled some of its restrictions on China’s Huawei to safeguard customers from the homeland. This could be considered as an extra point for optimists to watch.
Looking forward, a weekly release of the US oil stock by the private industry survey, namely the American Petroleum Institute (API) will be in the spotlight for now. The inventory level registered 8.6 million barrels as prior and will be up to release numbers for the week ended on May 17 at 21:30 GMT.
Technical Analysis
Prices need to clear $64.00 immediate resistance in order to aim for $64.70/80 areas including early April highs, a break of which can escalate the upside to $65.70 and $66.60 resistances.
Meanwhile, $62.50 acts as nearby support, a break of which can drag the quote to 50-day simple moving average (SMA) near $61.90 and then to $60.70 rest-points.
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