Oil prices settled at a six-month high on Monday. The gains came after President Trump announced an end to Iran’s crude oil exports to eight countries. Oil production will now suffer the blow of the sanctions on Iran and Venezuela as well as the political unrest in Libya. In retaliation, Iran threatened to close the Straits of Hormuz which could lead to longer delays in crude oil shipments.
Can WTI Maintain the Momentum?
Following the surge to the 65 – 66 region, the momentum looks somewhat mixed. If oil prices fail to post any major highs from this level, we expect to see prices turning flat. This also potentially sets the tone for a short term correction. The initial support level is at 64.50 which remains a key level to the downside.
