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Oil Holds Steady At The Top

WTI Crude oil continued to maintain a steady gain as prices rose to fresh yearly highs. Oil prices briefly tested a six-month high of 66.53 before pulling back by the closing session. Uncertainty about supply shortages continues in the oil markets. The onus now falls upon OPEC and Russia to plug the supply shortage from Iran. However, it is unlikely that Saudi Arabia will act alone in raising production.

Will Crude Oil Rise Further?

Following the strong gains over the past two days, oil prices were seen pulling back from the highs. Price is trading within the resistance area of the 65 – 66 handle. As long we do not see a weekly close above this level, oil prices could consolidate near the highs. Since the rally has been rather strong, there hasn’t been any pullback so far. Therefore, oil prices could post a correction in the near term. The initial support is seen at 64.55.

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