FxWirePro: US oil extends upside as Libya declares 'force majeure' on key oil supplies, test of $75 per barrel likely

• US oil pops in the overnight session, supply considerations keep prices elevated.
   
• Libya's National Oil Corporation declared 'force majeure', or unforeseeable circumstances on key oil supplies.
   
• The country's continued struggles with internal conflicts as they loose control of Zueitina and Hariga ports this week.
   
• Saudi Arabia doesn't seem to be too inclined to fulfill Trump's request for an extra 2 million barrels per day.
   
• President Trump's demand that Iran be locked out of oil markets is still keeping oil prices elevated.
   
• US Oil marked in a new high for 2018 at 74.78, and is on track to test $75 per barrel soon.
   
• Technical analysis is showing no signs of retracement, however momentum indicators have approached overbought levels, so caution advised.
   
• Break above 75 will see strong resistance at 75.25 (trendline). Break above 75.25 can take the pair higher to 76.49 (61.8% Fib level).

Call update: Our previous call (https://www.econotimes.com/FxWirePro-US-Oil-tops-73-a-barrel-highest-since-November-2014-1393934) is approaching TP2.

Recommendation: Book partial profits at highs. Hold for upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 48.0849 (Neutral) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.