Oil prices are likely to strengthen in the short term because of the latest tensions in the Middle East after the US plans to announce new sanctions against Iran related to their missile program.
However, the increase in oil prices has the potential to be limited and may even turn down if the market worries about the outlook for a global economic slowdown and the increase in US crude oil reserves.
Furthermore, on this day the market will await the release of rig activity data released by Baker Hughes at 00.00 WIB / Saturday. If the data shows an increase in rigs, oil prices have the opportunity to move down, but if the data shows a decrease then oil prices have the potential to rise.
To the upside, the closest resistance level is seen at 54.80, breaking above the level is likely to trigger a further rise to the level of 55.30 before testing the strong resistance level at 56.00. Conversely, if it moves down, the closest support level is at 54.00, breaking down from that level would potentially trigger a further decline to 53.50 before targeting strong support at 52.80.
Support levels: 54.00 - 53.50 - 52.80
Resistance levels: 54.80 - 55.30 - 56.00
