Crude Oil Higher, Breaking Above $70
Crude Oil prices are trading higher for fourth consecutive day amid increasing tensions in the Middle East that continue to threaten the world’s transport of crude oil. Last week, Iran seized two British oil tankers in the Strait of Hormuz and the UK is now weighing options of responding to the latest act of aggression by Iran. This seizure follows a series of skirmishes between both countries in recent weeks in the Middle East.
Crude oil is trading 0.58 percent higher at $57.15 making the daily high at 57.27 fighting with the resistance at 59.15 the 50 day moving average. If the price breaks convincingly above the 50 day moving average the way to 57.94 the 20 day moving average will be open. On the downside crude oil immediate support stands at 56.75 the 150 day moving average while more bids will emerge at 55.12 the low from July 19th. The technical picture is neutral for black gold even the short term momentum has turned positive the last three trading sessions.
Later today we await this week’s EIA Crude Oil Inventories report to be released at 14:30GMT.Don’t miss a beat! Follow us on Twitter.