WTI crude oil prices continue to surge due to the Mexican storm incident while all eyes are on OPEC Forecast Report. During the early Asian session, WTI crude oil prices traded bullish as the US Oil producers cut output from Gulf of Mexico by more than half because of the storm. Crude oil futures are up 0.6% trading at $60.55. Another supporting reason for WTI oil prices is the ongoing geopolitical tensions in the middle east.

At the beginning of this week, Iran tried to catch a British tanker in the Gulf. The oil tanker was passing the Hormuz area when an Iranian boat approached it and demanded the tanker change direction to stay in Iranian national waters.

At the moment, crude oil has crossed over the psychological trading level of $60 before violating the well-maintained trading range of $57.65 – $57.40. Both incidents suggest a strong bullish intention among investors.

Crude oil has already achieved our 58 and 60 targets and now it’s heading towards the target level of 61.35. The violation of this target level can lead to oil prices towards 63.27, but I’m not expecting such an aggressive movement this week. Let’s stay bullish above 60 today.

Support Resistance
59.12 61.07
57.9 61.81
55.95 63.76
Key Trading Level: 59.85

Good luck!