On the downside, the key support area is $56.93 to $56.47. The main trend will resume on a trade under $55.76. This is also the new secondary higher bottom so it carries some weight.
At 12:32 GMT, Light Crude Oil Futures are trading $58.29, up $0.53 or +0.92%.
Geopolitical Tensions Drive Supply Concerns
Iran moved into the headlines again as traders grew more concerned about a potential disruption to its crude oil output. Discussions over Venezuelan crude oil supply continued with traders also weighing disruption concerns, while worries over the spread of the Russia-Ukraine war are another factor being watched for supply issues.
Iran: Civil Unrest Escalates
In Iran, the protests appear to be gathering momentum. Escalating civil unrest leading to a supply disruption is a potentially bullish development. Meanwhile, the government has cut off access to the internet, internet monitoring group NetBlocks said on Thursday.
Venezuela: Political Transition Creates Uncertainty
The situation in Venezuela seems to have gone from good to worrisome because it doesn’t look like the transition is going as smoothly as expected. Early in the week, the Trump Administration strongly indicated it was running Venezuela’s oil industry, but Trump is now demanding that the country give the U.S. full access to its oil sector just days after it removed the country’s president Nicolás Maduro on Saturday.
U.S. officials have said Washington will control the country’s oil sales and revenue indefinitely, a matter likely to be discussed when Trump meets with the major oil companies and trading houses on Friday to discuss Venezuelan export deals.
