During the Asian and European session, the U.S. Oil edged higher toward $73 a barrel, backed by real and threatened supply interruptions in the Middle East and going for a weekly gain.
U.S. Oil Trades Bullishish – Primary Reasons
First of all, the U.S. sanctions on Iran have evaded the OPEC member’s crude shipping further in May, appending to supply barriers emerging from an OPEC-led agreement.
Secondly, mounting tensions in the Middle East this week has inflated concern about further supply interruption.
Thirdly, the technical outlook has turned bullish. On the hour chart, crude oil has formed a bullish engulfing pattern which is keeping crude oil bullish over 63. Besides that, crude oil has breached the upper range of 63. With this, crude oil has a high potential to go after 64 and 64.45 trading levels.
I will consider taking buy positions around 63 to hit the target of 64. All the best!