Oil rose on supply concerns as Saudi’s Oil tankers were sabotaged off the coast of the UAE, but upside capped

Oil rose above 200MA, upside capped

Technical: Crude oil is trading at 62.30, breaks the 62 or 200MA a former resistance and now turned to support.. Trend remains weak for downside 60.60/60.30 levels initially. For the day one can add or hold sells till 62.50 levels for downside 60.60/60.30. A break upside 62.80 can hit the next resistance level at 62.30 (May 13th, 2019 high) break and close above this level can test the immediate resistance at 64.70 (April 30th, 2019 High). Overall sell on rise is advised for the day.

Fundamental: On Wednesday, WTI Crude prices ended 0.4 percent higher to close at 62.0 per barrel after two of Saudi’s Oil tankers were sabotaged off the coast of the UAE which has raised supply concerns amid U.S. sanctions on Iran. Potential supply disruption coupled with supply cuts by OPEC supported the prices. Even the trade tension between US and China showed some signs of easing off as president Trump decided to delay imposing tariffs on imported cars and parts by up to six months avoiding further escalation of trade tension between the two nations. However, unexpected surge in U.S. crude inventory capped the gains for crude. As per reports form the Energy Information Administration (EIA), Crude inventory increased by 5.4 million barrels last week, hitting its highest levels since September 2017.

SUGGESTION: SELL OIL TILL 62.50 FOR 61.20/60.60 ELSE BUY ABOVE 63.30 FOR 64.50/64.70

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