Oil price stands at the front foot as Middle East escalation so far offsets negative impact from trade war
WTI oil advanced over 2% on Monday, supported by rising tensions as two Saudi tankers were attacked on Sunday.
The oil price maintains strong bullish near-term stance, despite the latest news on deepening crisis between the US and China, as China announced their steps in response to increase of tariffs from the US.
Rising fears that escalation of tensions in the Middle East, after the US sanctions cut oil exports from Iran, can seriously impact global oil supply, so far offset negative consequences from US/China trade war.
Today’s bullish acceleration eventually broke above multi-day congestion, signaling that corrective pullback from $66.58 to $60.03 might be over.
Fresh bulls broke above important Fibo barrier at $62.53 (38.2% of $66.58/$60.03) but need daily close above to generate bullish signal for further advance.
Conversely, failure to close above $62.53 pivot would keep the downside vulnerable.
Res: 62.92; 63.30; 63.65; 64.08
Sup: 62.21; 61.94; 61.19; 60.85