US crude oil last week
Last week, US crude oil June futures fell 0.5% and closed at $61.66 per barrel on May 10. The S&P 500 Index (SPY) fell 2.2% last week. The fall in broader market might have dragged oil prices despite a decrease in weekly US crude oil supplies.
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At 6:14 AM EST on May 13, US crude oil prices had risen 1.6% from the closing level last week. Initially, US crude oil prices were trading lower. However, with the news of an attack on oil tankers in the Middle East, US crude oil prices flipped. Supply concerns might have dominated over oil prices early in this week despite weakness in the equity market. Equity markets across the globe were adversely impacted by increased tariffs on Chinese goods. The geopolitical tension in the Middle East could further increase because of US sanctions on Iran that aim to cripple the country economy. Moreover, oil will likely gain strength from US sanctions on Venezuela and the war in Libya.
This week, the closing level of $63.72 will be important for US crude oil prices. This price level is close to WTI or US crude oil’s 20-day moving average at $63.49, an important resistance zone for oil prices since April 25. Near these level, the concerns surrounding global economic growth might come into play.