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  • The price of oil  is volatile on increasing geopolitical tensions.
  • A break of the 200 Experiential Moving Averages opens  the 60 level on the top side.

Spot prices in  August West Texas Intermediate moved between a high of $57.30 and a low of $55.91, ending the New York session 1.91% higher at $57.24 as U.S. government data showed domestic crude supplies fell a third straight week, but by a lot less than the market expected.  The session’s high for futures came in at $57.44 as investors took on, took off their positions while regular trading on the exchange will be shut for the Independence Day holiday on Thursday.

In Asia, prices  stand at $57.23 but, on the geopolitical front, Iran’s president who warned European partners in its faltering nuclear deal Wednesday that Tehran will increase its enrichment of uranium to “any amount that we want” beginning on Sunday, will be expected to antagonise the Trump administration even more, following Trump’s rehtoric today. He  has warned  Iran that  threats `Can Come Back To Bite’ … in an escalation of tensions between Washington and  Tehran.

“Iran has just issued a New Warning. Rouhani says that they will Enrich Uranium to “any amount we want” if there is no new Nuclear Deal. Be careful with the threats, Iran. They can come back to bite you like nobody has been bitten before!”

All of his follows recently signed  executive orders that have  imposes new sanctions on Iranian officials including Ayatollah Ali Khamenei, the supreme leader and ultimate decision maker. The US did not seek conflict but it “cannot ever let Iran have a nuclear weapon”, he added. Steven Mnuchin has already  warned that Mr Zarif, the country’s top diplomat, would also face sanctions within the week, but such sanctions have not materialised.

“With OPEC+ keeping the taps shut, rising Middle East geopolitical risks and sharp reductions in Iranian export flows, along with lower US inventories, will all contribute to upside potential for crude,” analysts at TD Securities argued.  

WTI levels

From a technical standpoint, WTI is running between the 38.2% Fibo of the daily swing lows and highs, through the 20, 50 and 200 Experiential Moving Averages and the 60 level on the top side. Below the weekly lows at 56.77, bears can look to the 52 handle and the 14th Jan 50.41 lows ahead of the 26th November lows at 49.44.