Crude oil price rebounds from yesterday’s sharp losses that moved the price down to fresh monthly low. Crude price rallied to eight-month highs after the Iranian missile attack in a U.S. base in Iraq. Yesterday President Trump calmed markets after saying that the U.S. will not respond with military measures to the Iranian aggression.
The Energy Information Administration reported yesterday that U.S. crude oil supplies edged up by 1.2 million barrels for the January 03 week, after falling 11.5 million barrels the last week. Economist’s expected a decline of 3.6 million barrels. The API on Tuesday reported a 5.95 million-barrel decline.
The Crude oil price adds 0.08% at $59.67 as the price returned to levels before the killing of the Iranian General Soleimani. The sharp corrections questions the recent bullish momentum for the crude oil price.
On the downside, initial resistance for crude oil price stands at $59.48 today’s low, while the next support area on the downside will be met at $57.88 the 50-day moving average. A break below might result in a deeper move down to $57.02 where the 100-day moving average cross.
On the contrary, crude oil prices first resistance will be met at $60.31 on the daily top. If the crude price breaks above, the next barrier will be met at 63.09 the high from January 7th. Next level for bulls to watch on the upside is the 65.65 high from the trading session yesterday.