Daily Outlook of USOIL

USOIL the pair traded in bullish trend , After API surprised markets with a 1.1-million-barrel build in crude oil inventories yesterday, the EIA reinforced the mood by reporting a 2.2-million-barrel build for the week to April 20,The effect of EIA’s latest inventory report on oil prices would be interesting to watch; API’s figures seemed to remind market players that not all fundamentals are bullish for oil, with U.S. oil production continuing to be the main headwind for OPEC’s plans to push up prices higher.

In addition to fundamentals, there has been a shift in geopolitical sentiment after France’s president Emmanuel Macron yesterday called for a new Iran deal, Oil prices were rising steadily at the start of trading on Tuesday, but quickly went into reverse after the comments from Macron and Trump. At the start of a meeting, Trump called the Iran deal “terrible,” “insane,” and “ridiculous.” President Trump will announce his decision about the Iran deal on May 12.

As technically the pair trading in under trend range with the strong and support resistance, we can see a short fall to test 66.50/66.10 before going to rally to wards 70.00.