Crude oil prices maintained the momentum into Friday’s close as price settled near a 3-week high. Price action remained biased to the upside, but the pace of gains was limited compared to the previous days. This came as President Trump was close to ordering an attack on Iran but refrained at the last minute. Investors expect to see diplomacy take the front-seat, adding to easing pressures. Over the weekend, Trump announced fresh sanctions on Iran.
Oil Prices Could Correct in Near Term
Following the rally to the identified resistance level of 57.50, crude oil prices closed with a spinning top pattern on Friday. A bearish follow-through is required today in order to confirm the short-term downside. The lower support is found at 54.24 which could be tested in the near term. A rebound off the 54.24 level could pave the way for oil prices to break past the 57.5 resistance level and aim for the $60 handle.