- Traders focussed on Iran, but are the protests really that much of a risk?
- Bullish from here still on the daily sticks and market's positioning?
WTI remains in a bullish formation and is underpinned by concerns over the unrest in Iran whos lift in sanctions back in Jan 2016 when Tehran complied with that landmark nuclear deal under the Obama administration was a major downside catalyst in the market - WTI sank to as low as $26bbls before recovering to a more respectable $50bbls level in April of the same year.
While analysts do not see a markable lift in the price oil directly on the back of the protests spreading across Iran, the Iranian regime's response may embolden President Trump to snap sanctions back into place. However, it appears that the 2.3 million barrels a day that Iran exports are still quite safe right now and the oil fields have not become a target by protestors, as of yet.
Also, traders on Friday have welcomed data showing a weekly decline in the number of U.S. drilling rigs. Weekly data from Baker Hughes showed the number of active rigs drilling for oil unexpectedly fell by five to 742 last week a positive factor for oil prices given that production could fall. As a result, net long Brent positions were climbing to a record high last week, underpinning the bullish case for higher prices yet.
Price is consolidating just below the 2½-year high
The price is consolidating just below the 2½-year high made last week at $62.04bbls. WTI and Brent scored weekly gains of 1.7% and 1.1%, respectively, boosted by a seventh-straight drop in U.S. crude supplies as well as the protests on Iran.
Technical levels to watch
Technically, the price looks stable above the ascending 100 SMA on the hourly sticks at $61.26bbls, although 4-hr RSI is losing its upside trajectory and the 10 sma is crossing below the 21 sma on the same time frame. The daily picture is more positive with momentum and RSI in bullish territory.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.