Oil price rallied to new 40-month high at $67.74 on Friday after International Energy Agency reported that global oil stocks returned to desired levels and oil glut is almost over, while demand remains unchanged. Fresh strength after oil price pulled back on easing tensions over Syria on Thursday, signals oil price may continue to rise and extend steep acceleration from last Friday’s trough at $61.80. The price is on track for weekly close above cracked $66.75 barrier (Fibo 50% of $107.45/$26.04 fall) which would be bullish signal for extension towards psychological $70 barrier. Another bullish signal is developing on weekly chart as oil is on track for the strongest weekly performance since the last week of November 2016. Bullish techs add to positive fundamentals and continue to underpin oil price, however, overbought slow stochastic on daily chart warns that bulls may take a breather. Corrective dips should be ideally contained above $65.50 zone to keep bulls intact. Bearish scenario would require extension and close below converged 10/20SMA’s ($64.44/$64.56) to neutralize bulls.
Res: 67.74, 68.63, 69.00, 70.00
Sup: 67.00, 66.79, 66.53, 66.00
