With crude inventories seemingly increasing week on week since the start of 2017, crude oil price has been trading in a range of $50-55 per barrel.
From a technical perspective, the market has rejected price levels from 53s to 55s on 8 different occasions. My view is to stay short on CL while resistance at 55 still holds, key support areas will be 50s to 51s. It's best to watch how the markets react to these levels and adapt to price action accordingly.
Key risk:
Tensions between US-Iran
The Trump administration is moving to impose sanctions after Iran conducted test missiles, with Iran's increasing market presence on oil production, unexpected geopolitical tensions will cut supply on crude oil.
From a technical perspective, the market has rejected price levels from 53s to 55s on 8 different occasions. My view is to stay short on CL while resistance at 55 still holds, key support areas will be 50s to 51s. It's best to watch how the markets react to these levels and adapt to price action accordingly.
Key risk:
Tensions between US-Iran
The Trump administration is moving to impose sanctions after Iran conducted test missiles, with Iran's increasing market presence on oil production, unexpected geopolitical tensions will cut supply on crude oil.