Crude Oil Gains Support – Geopolitical Tensions Lead

Oil prices rose during the Asian sessions as investors reacted to the news about the blast of two tankers in an attack near the shore...

Arslan Butt•Friday, June 14, 2019•1 min read

Oil prices rose during the Asian session as investors reacted to the news about the blast of two tankers in an attack near the shore of Iran which triggered buying.

Uncertainty increased after the US Secretary of State Mike Pompeo blamed Iran for carrying out the attacks, although, it’s still not clear who’s behind this latest attack. Iran denied these allegations, saying it is not involved in the attacks.

In addition to this, WTI crude oil prices faced headwinds earlier this week after weekly data presented another significant rise in US crude stockpiles. Continuing demand fears between Sino-US trade tension were also marked.

At the moment, the technical side of crude oil suggests a bearish bias. For instance, the 4-hourly has formed a descending triangle pattern which is supporting oil around 50.95 along with resistance around 53.

The violation of 53 support level may trigger sharp sell-off until 48.45. Whereas, the bullish breakout of 53 can extend oil prices towards 54.60.

Good luck!

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.