Oil prices are trading higher amid increasing tensions in the Middle East that continue to threaten the world’s transport of crude. The American Petroleum Institute reported a crude inventory draw of 8.129 million barrels for the week ending July 4th, compared to market expectations of a 3.081 million barrel draw. Last week, the API reported a draw of 5 million barrels. The net build is just 13.56 million barrels for the 28-week reporting period so far this year.
Crude oil is trading 1.11 percent higher at $58.99 facing the resistance at 59.12 the 100 day moving average. If the price breaks convincingly above the 100 day moving average the way to 60.20 high from July 1st will be open. On the downside crude oil immediate support stands at 57.91 the 50 day moving average while more bids will emerge at 56.76 the 20 day moving average.Don’t miss a beat! Follow us on Twitter.