Crude oil prices edged at a three-week high as the outlook of supply disruptions amid Middle East tensions balanced expectations for a rise in U.S. crude supplies for the fourth-straight week.
“The Iran deal is coming up. It’s probably another month or so, and you’re going to see what I do,” Trump told reporters at a White House meeting Tuesday with Saudi Arabia’s Crown Prince Mohammed Bin Salman. “But Iran has not been treating that part of the world or the world itself appropriately. A lot of bad things are happening in Iran.”
Saudi Arabia upped the ante against Iran Monday, calling the 2015 Iran nuclear deal “flawed agreement”. If Trump does scrap the deal, it could lead to re-imposition of secondary sanctions on Iran, pressuring countries to reduce their purchases of Iranian crude.
The American Petroleum Institute weekly inventory report is expected later on today after US markets close, while the US Energy Information Administration issues its supply totals Thursday at 10:30 a.m. ET.
Crude Technical outlook :
Crude oil daily chart has formed “Symmetrical triangle” pattern. The last few sessions been bullish in trend as the prices seems to have already broken out the pattern itself. The market is expected to continue in bullish momentum for a while to retest the major resistance holding at 4200 and then turn bearish. The downside rally could test all the way through 4150-4100 levels in the upcoming sessions. Alternatively, if the market breaks above the resistance level then it might continue in bullish momentum. The upside rally could test 4240-4260 levels. Support holds at 4100.