WTI firmer above $56 as US-Iran tensions flare up, US rigs data eyed

Oil lifted by fresh US-Iran geopolitical worries, but bulls lack follow-through.
Stronger USD, bearish IEA headlines and US stocks surge cap oil's rally.
Investors' attention turns to US rig count and consumer sentiment data for fresh directives.

Dhwani Mehta FXStreet

WTI (futures on Nymex) is seen consolidating its recovery from monthly lows of 54.75; the bulls take a breather amid resurgent US dollar demand and nervousness ahead of the US drilling sector activity data.

The black gold jumped over 1.50% this Friday, mainly driven by renewed tensions between the US and Iran after the US President Trump said that the US Navy ship “destroyed” an Iranian drone in the Strait of Hormuz. However, the tensions flared up after the Iranian officials denied any such shooting down of Iran’s drone, saying that all drones have returned to their base.

The bulls lacked the vigor to extend the upside, as investors continued to weigh in the recent comments by the International Energy Agency (IEA) Chief Birol. Birol said the IEA is revising down the 2019 global oil demand growth forecast, in light of slowing global economy, especially China.

Moreover, broad-based US dollar recovery, as well as swelling US fuel stockpiles, keep the sentiment undermined around the commodity. Attention now turns towards the US UoM Consumer Sentiment and rig count data due later today for near-term trading opportunities.

WTI levels to watch

WTI

Overview
Today last price	56.18
Today Daily Change	0.41
Today Daily Change %	0.74
Today daily open	55.77

Trends
Daily SMA20	58.26
Daily SMA50	57.52
Daily SMA100	59.43
Daily SMA200	57.03

Levels
Previous Daily High	57.46
Previous Daily Low	54.87
Previous Weekly High	60.99
Previous Weekly Low	57.37
Previous Monthly High	59.93
Previous Monthly Low	50.72
Daily Fibonacci 38.2%	55.86
Daily Fibonacci 61.8%	56.47
Daily Pivot Point S1	54.61
Daily Pivot Point S2	53.44
Daily Pivot Point S3	52.02
Daily Pivot Point R1	57.2
Daily Pivot Point R2	58.62
Daily Pivot Point R3	59.79

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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