Oil prices, which were falling for the most part of the weak eased on Friday. The rebound, however, came on news that US warships had shot down an Iranian drone. Authorities in Tehran brushed aside the news as rumors. However, reports revealed that Tehran seized a British oil tanker in the Straits of Hormuz, escalating tensions with the US.
Can WTI Maintain the Momentum?
After breaking past the support level of 57.50, oil posted a steady decline. However, the reversal came just a few points above the support at 54.42. With the escalating tensions over the week, crude oil could be seen posting a rebound in the near term. The breached support at 57.50 could be tested for resistance.