WTI oil rallied over 3.5% on Thursday, boosted by newest tensions in the Middle East after Iran shot down US military drone. The latest case adds to heated situation after two tankers were attacked near-the straight of Hormuz. Oil prices were also boosted by agreement of OPEC+ members on a date for a meeting to discuss the extension of production cut deal which expires at the end of June. Today’s rally broke above 20SMA ($54.54) and pressure pivotal barriers at $56.70 (Fibo 38.2% of $66.58/$50.59) and $56.97 (falling 30SMA), break of which will generate fresh bullish signal for extension of recovery leg from $50.59 (5 June low).
Res: 56.70; 56.97; 57.32; 58.60
Sup: 55.61; 55.42; 54.79; 54.54