U.S Crude Oil has put in consistent incremental gains since the first week of October. Geo-political concerns from the Middle-East may be creating support for Crude Oil. Supply numbers will come from the U.S today.
Speculative Momentum Building in Crude Oil
U.S Crude Oil has made incremental gains since the first week of October and appears to have speculative momentum. U.S Crude Oil is above 52.00 U.S Dollars a barrel and may have additional room to climb.
Support for U.S Crude Oil may be around 51.00 U.S Dollars in the short-term. While upside resistance may be tested around the 53.00 U.S Dollars mark.
Geo-Politics Inflating Price of Crude Oil
Crude Oil Inventories will come from the U.S today and while this is always a significant factor for traders, it is likely not the impetus which concerns traders the most.
Political tension between Iraq and the Kurds has led to confrontation the past week in the Kirkuk region which is an oil producing area. While supply is stable, there is also growing unease regarding Iran and the U.S regarding the possibility of a nullification of Iran nuclear agreement.
Intriguing Psychological Support Developing
The political concerns may be creating an intriguing psychological support level for Crude Oil in the short term.
U.S Crude Oil seems to have benefited from the geo-political wrangling, and the fact that its long-term consolidated range has tested values above the 53.00 U.S Dollars a barrel level before may serve as an alluring trade for speculators.
In the short term, we believe U.S Crude Oil may be negative. Mid-term and Long-term we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
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