Crude oil WTI consolidating below 67.45 a five-year high

• Tensions in the Middle-East and the Iranian deal keep oil higher.
• Crude oil WTI is trading at 5-year highs. 

Crude oil WTI is trading at around $67.13 per barrel, up 0.59% on Thursday, trading at levels not seen since late 2014. 

The worsening geopolitical tension in the Middle-East sent the black gold to 5-year highs. Since Monday oil gained nearly 9% leaping from $61.93 per barrel to 67.45 on Wednesday’s trading. 

On Sunday, the Syrian government led an alleged chemical weapons attack in Douma, Syria. The US responded that they would retaliate “forcefully” and that Russia, which is backing the Syrian regime, should “get ready”. However, the escalation of threats by the US is somewhat abating as early on Thursday President Trump said that there might not be any airstrike for the time being. “We’ll see what happens. We’re looking very seriously at that situation,” said Trump, as reported by The Guardian.

“Never said when an attack on Syria would take place. Could be very soon or not so soon at all! In any event, the United States, under my Administration, has done a great job of ridding the region of ISIS. Where is our “Thank you America?” tweeted Trump. 

Adding fuel to the fire were missiles intercepted by the Saudi Arabia air defense on Wednesday. The attack was launched by Houthis rebels in Yemen. 

Meanwhile, on Wednesday the EIA data printed a large build in oil stocks but the normally bearish news was shrugged off by market participants who stayed focus on the geopolitical turmoil. 

Also helping to keep up the oil prices is that Trump will likely pull out of the Iranian nuclear agreement on May 12, according to analysts, which is the next deadline where he will have to make a decision on whether to keep the deal or not.

"The nuclear agreement with Iran is already in the ER (emergency room). It is very difficult not to see Trump move in a direction where he pushes the U.S. to withdraw from the nuclear agreement. (That's) very meaningful for oil markets and very meaningful for geopolitical stability in the Middle East." says Ayham Kamel, from Eurasia Group. 

Crude oil WTI: 4-hour chart

Supports lie at the 66.00 figure and at 65.42 demand level. Resistance is seen at the recent high at 67.45, followed by the 68 and 69 figures.