Crude Oil Gains Support – Saudi Oil Tankers Under Attack
Arslan Butt • 1 min read
As you know, WTI crude oil was bearish over trade war sentiments that the US & China will lower their demand as they both consume around 34% of overall consumption. However, the recent shocking news from Saudi Arabia extended its support.
On Monday, oil prices increase due to a tanker attack near the Persian Gulf. In today’s attack, two crude oil tankers are badly damaged triggering US oil demand over fears of an oil shortage.
In response to this, Saudia Arabia explained that one of the reasons behind this attack is to damage the security of global crude oil supplies and perhaps to hurt Saudi Arabia and UAE relations as they are the third-largest producers in the world.
Technical outlook remains slightly bullish as crude oil continues to trade sideways in a broad trading range of 62.50 – 60.30. The descending triangle support level of 62.50 is now working as a resistance, giving a hard time to bulls.
Let’s wait for the market to violate 62.50 level first as closing outside this range is likely to add further buying until 64. In case of no breakout, oil prices can continue to consolidate under 62.50.