Oil prices hit two-and-a-half year highs with less volume on Tuesday, increased by a blast on a crude pipeline in Libya and intended OPEC-led supply cuts.
A Libyan oil source said – Libya has lost around 90,000 bpd of crude oil from a blast on a pipeline feeding Es Sider port and the NOC was still assessing the damage.
According to a Lybian military source earlier – armed men had planted explosives at the pipeline. Trading activity was limited because of the Christmas holiday in many countries. Only 50,000 contracts of front-month Brent crude futures changed hands on Tuesday.
Crude Oil Daily chart has formed “Symmetrical triangle” pattern. The trend still remains to be bullish as the market have already broken out the pattern itself. As per the break in previous resistance, market is to continue in the same trend. The upside rally could test $61-62(3913-3977) levels in the upcoming sessions. Support holds at $58.50(3753). Alternatively, we can also expect a small correction over negative momentum.