Oil Settles Higher as Canadian Fire, Libya Conflict Limit Supply
Crude oil prices rallied at the beginning of the day, with WTI futures
posting a daily high of $46.05 a barrel, on the back of the huge
wildfire going on in the oil sands' region in Canada, forcing the close
of many pipelines, and escalating tensions in Libya.
Prospects of diminishing supply supported the early rally, although the commodity trimmed almost all of its daily gains to close the day pretty much flat around $44.30/bbl, on dollar's strength.
WTI technical view
“From a technical point of view, the daily chart shows that the price holds above a horizontal 20 SMA, whilst the technical indicator lack clear directional strength, but hold within positive territory”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is hovering around a bearish 20 SMA, while the technical indicators head modestly higher around their mid-lines, not enough to confirm an upward continuation. The key support stands at 43.20, the weekly low, with a break below it opening doors for a test of the 40.00 level ahead of the weekend.”
Support levels: 43.90 43.20 42.50. Resistance levels: 44.60 45.10 45.80.