WTI rises for the 3rd straight session

FXStreet (Mumbai) - WTI oil futures on the Nymex extends its upward trajectory for the third straight session, amid rising geopolitical tension and speculation over Iran's nuclear deal, while the rally remains capped thanks to global oversupply.

WTI supported above USD 52/ barrel

Currently, WTI trades nearly 70% higher at 52.29 levels, facing rejection at 53 levels. Crude prices remains moderately higher lifted by Middle East tensions that supported demand for the commodity.

Meanwhile, Iran urged Yemen yesterday to form a government and offered to assist in the political transition, which is likely to cause more conflicts as Saudi Arabia is backing Yemen's current president against a rebel force allied with Iran.

Moreover, the US Energy Information Administration’s (EIA) noted Monday that total crude-oil production from seven key shale regions will likely decline by 57,000 barrels a day in May from April also kept oil prices underpinned.

Crude Oil Technical Levels

WTI oil has an immediate resistance which stands at 53.10 levels above which gains could be extended to 54 levels. Meanwhile, support is seen at 51.50 levels from here losses could be extended to 48.73 levels.