Crude oil continues the trip north adding more than 0.60 percent to $57.52 as the dollar denominated assets buying frenzy continues. Central bank easing both from RBA, ECB and FED, along with an escalation in USA – Iran tension leads to stronger demand for crude oil. A report that President Trump approved military action against Iran, but then pulled back from launching the attacks weighed on sentiment. The Energy Information Administration announced earlier this week a larger than analyst’s forecasts in USA crude oil supplies during the previous week.
Black gold is in bullish momentum as earlier this week has breached all the major hourly moving averages, and today continues with another leg higher. The daily high reached at 57.98 while the daily low was at 56.66. On the upside first resistance stands at 58.54 the 100 day moving average while next resistance stands at 59.60 where the 50 day moving averages cross. Crude oil immediate support stands at 55.98 the 150 day moving average and if the price breaks below, the selloff will intensify and we might test the 20 day moving average at 54.44. All in all bulls are in drivers’ seat for now and higher level is on the cards.