FxWirePro- Crude Oil Daily Outlook

Crude oil-

WTI crude oil gained above $80 on geo-political tension. It hit a high of $80.84 yesterday and is currently trading at $80.48.

 Oil prices surged more than $1 after a Ukraine drone struck a Russian port oil terminal. The escalation of tension in the Middle East supports crude oil at lower levels.

Crude oil inventories rose by 2.264 million barrels for the week ending June 14th, according to the American Petroleum Institute (API). Department of Energy (DOE) reported on Tuesday that the crude inventories in SPR increased by 0.40 million bbls.

Major factors for crude oil price movement-

US dollar index (Bullish)- Negative for Crude.

Major resistance - 105.50/107.

Major support- 104/103.

Geopolitical tension- Escalation of tension between Israel and Gaza ( positive for crude).

Ichimoku analysis (4- hour chart)

Tenken-Sen- $76.39

Kijun-Sen- $76.59

The immediate resistance is around $81—any jump above the target of $82/$83.50. On the lower side, near-term support is around $80. Any breach below will drag the commodity to $79/ $78.25/$77.60/$76.87/$76/$75.

It is good to buy on dips around $80.10-15 with SL around $79 for a TP of $83.