Crude oil price trades higher supported by the closure of two sizeable crude oil production bases in Libya. Unrest in Iraq blocked access to Al Ahdab oil field, and might cause a production halt. On the contrary, Guyana exported about 1MBPD, the first-ever shipment of crude for the U.S., marking the long-awaited debut as a world oil exporter.
Crude price rallied to eight-month highs after the Iranian missile attack in a U.S. base in Iraq. IMF, lowered the 2020 global economic growth forecast to 3.3% from 3.4%. For the US it sees 2020 growth at 2.0% from 2.1%. China 2020 growth forecast estimated at 6.0% from 5.8%.
Investors will follow President Trump’s speech at the World Economic Forum in Davos, Switzerland that starts at 10:30GMT.
The Crude oil price is 0.09% higher at $58.63 as the rebound from monthly lows continues. Crude oil price tested the 100-day moving average the previous week and managed to rebound. Today black gold managed to break above the 50-day moving average.
On the upside, crude oil prices initial resistance will be met at $59.77 the daily high. If the crude price breach the intial resistance, the next hurdle will be met at 60.30 the high from January 9th. The high from January 7th at 63.09 is the next resistance level. Next level for bulls to watch on the upside is the 65.65 high from January 9th.
On the other hand, immediate support for crude oil price stands at $55.56 today’s low, while the next support area will be met at $57.79 the 200-day moving average. A break below might result in a deeper move down to $57.25 where the 100-day moving average cross.