FxWirePro- Crude Oil Daily Outlook

Crude oil-

WTI crude oil hits 7-week high on strong demand. It hit a high of $81.48 yesterday and is currently trading at $801.08.

Crude oil inventories declined by 2.5 million barrels compared to a forecast of -2.8 million barrels for the week ending June 14th, according to the Energy Information Administration (EIA). Gasoline inventories fell by 2.3 million bbls to 232 million vs an estimate of a 6000000 barrel build.

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- $80.93

Kijun-Sen- $79.52

The immediate resistance is around $81.50. Any jump above the target of $82/$83.50. On the lower side, near-term support is around $80.40. Any breach below will drag the commodity down to $80/$79/ $78.25/$77.60/$76.87/$76/$75.

It is good to buy on dips around $80.70-75 with SL around $79.35 for a TP of $83.