Crude oil prices were largely flat on Monday, marking a second consecutive day. While the tensions surrounding Iran seizing the British oil tanker continues, investors brushed aside the tensions. The American Petroleum Institute will be releasing its weekly crude oil inventory report today which is likely to move the oil markets later in the day.
Crude oil likely to maintain the sideways range
Oil prices have stabilized after breaking past the support area of 57.50. However, the declines below this level haven’t seen oil testing the lower end of the range at 54.42. We expect this sideways range to continue in the short term. Today’s API report could move the oil markets and the bias remains to the downside for now. A breakdown below 54.42 could spell further declines down to the 50.00.
