WTI is balanced as Trump fires Tillerson

“Rexit” might trigger higher oil prices.
Balanced technical picture.

Flavio Tosti Independent Analyst

Donald Trump firing Rex Tillerson (Rexit), secretary of State, may threaten the Iranian nuclear deal according to analysts. In 2015, Iran and six other countries signed an agreement which would monitor Iranian nuclear activity. Mike Pompeo the new secretary of State, is known to be fairly critical toward the Iranian nuclear deal and his new position can shake the foundation of the deal. The potential alteration or termination of the deal could disrupt oil supplies and send oil price higher.

Tomorrow will see the EIA stocks change expected at 1.5m. Earlier on Tuesday, the API weekly crude oil stock came in at 1.156m.

WTI daily chart

Crude oil is consolidating in a triangle since the start of the year. It is trading above its 100 and 200 period moving average. Support is seen at the 60.00 psychological level and at 58.00 cyclical low. Resistance is seen at 64.30 cyclical high and 66.70 which is the high of the last bull run. A breakout in either direction should provide some directionality as the picture is pretty neutral now.

Author

Flavio Tosti

Independent Analyst

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