Crude oil prices rose over 2% on the day after the news about the US warship being deployed in the Persian Gulf. The move comes following Iran’s threats to block the Straits of Hormuz, a key choke point for oil from the Middle-East. The threat by Iran comes after the US ended the waivers on Iranian oil on May 2 nd .
Can Oil Prices Advance Further?
The rebound off the lower support at 60.33 sent WTI crude oil prices to retest the previously held support level of 62.85. The rebound to this level marks a correction amid what we expect to be a correction in the prices. As long as the resistance level is not breached, oil could be seen extending declines. A retest back to 60.33 support is likely with a breakout below this level pushing oil prices toward 57.50 support.
