Crude oil - Commodity of the week
Crude oil trading weak for fifth consecutive day on easing supply tension. It hits a low of $72.57 at the time of writing and is currently trading around $73.91.
US Secretary of State Antony Blinken said that Israel has accepted for Gaza ceasefire deal. The return of oil production of about 300kb/d from Libya Waha oil field after pipeline maintenance also put pressure on oil prices.
Major factors supporting higher Crude oil price
US dollar index - Bearish
US treasury yield- weak (positive for commodity market). Market anticipates rate cut by Sep.
Major resistance- $74.Any breach above will take the commodity to the next level $75/$75.65/$76.80/$78/$80. Major trend reversal only above $84.50.
The near-term support is around $72, and any violation below targets $71.50/$70.
It is good to sell on rallies around $74.25-30 with SL around $75.65 for TP of $71.70.
