Oil is trading within the upwards trade. The nearest key resistance level is [6/8] Murrey or 68.35. The demand for "black gold" is caused by US Weekly Crude Oil Stock release, which decreased by 3.2 million barrels to 407.6 million against the forecast of 2.3 million last week. Gasoline stocks fell by 4.9 million barrels, significantly exceeding forecasts of 0.71 million.
The second supporting factor is the tense situation between Washington and Iran. The US Secretary of State promised to introduce additional sanctions against the country, affecting not only the energy sector, but also the banking one. Tehran, in turn, is going to block the transportation of all oil through the Strait of Hormuz, if the export of raw materials is impossible. This initiative was supported by the supreme leader of the country Ali Khamenei.
The prices can be supported by US senators’ statement with the initiative to develop a new bill to strengthen the sanctions against Russia, putting pressure on the energy sector, public debt and the financial sector. At the moment, Russia occupies one of the leading places in the world for the production of oil.
Support and resistance
Stochastic is at the level of 16 points and signals a possible correction.
Resistance levels: 68.35, 68.55.
Support levels: 67.96, 67.50.
Long positions can be opened from the level of 67.96 with the target at 69.00 and stop loss 67.50.
WTI Crude Oil
|Support levels||67.50, 67.96, 68.35, 68.55|
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