Crude oil WTI soars above $63 as Trump is ready to retaliate against Syrian attacks
- Trump will make a decision in the next 24 to 48 hours as to whether the US will retaliate military.
- Crude oil WTI jumped above the 63.00 resistance.
The Crude oil WTI is trading at around $63.34 a barrel, up 1.74% on Monday on geopolitical concerns and a weak US Dollar. It is the biggest one-day advance for crude since March 23rd.
In Syria, the chemical attack allegedly perpetrated by the Syrian government and backed by Russia and Iran was the trigger for increasing geopolitical tensions. Trump said he would retaliate in the next 24 to 48 hours. “We’ll be making that decision very quickly, probably by the end of today. We cannot allow atrocities like that.” President Trump said in a press conference.
US President Tweeted: “Many dead, including women and children, in a mindless chemical attack in Syria. Area of atrocity is on lockdown and encircled by Syrian Army, making it completely inaccessible to outside world. President Putin, Russia, and Iran are responsible for backing Animal Assad. Big price…”
Compounding the bullish sentiment on crude is the weak US Dollar as the US-China trade tariffs conflict is still on the table. China said they are studying options to devalue the yuan in order to gain a commercial advantage. Further, weakening the US Dollar was also the worst-than-expected Non-Farm Payroll on Friday.
Meanwhile, last week Baker Hughes report said that drillers added 10 new rigs, which was seen back then as short-term bearish.
Crude oil WTI weekly chart
The oil is trading in a bull channel and has found support at $61.81, last week’s low.
Crude oil WTI daily chart
Monday traded inside last Friday’s range and created an inside bar in the process.
Crude oil WTI 4-hour chart
The bulls took the lead on Monday and found buyers a few ticks shy off the 63.72 resistance. The bulls have likely gathered momentum to break the resistance to the upside. If the breakout is successful the next key resistance in sight is seen at 64.53 and 65.42 previous supply levels. On the flip side, support is seen at 62.80 previous demand zone and at 61.81 cyclical low.