Crude oil prices rose higher on Monday and trade slightly higher on Tuesday morning with an optimistic start to the week as Hurricane Nate weakened and the upbeat comments from OPEC boosted sentiment.

According to the Bureau of Safety and Environmental Enforcement, more than 90% percent of crude oil production capacity in the Gulf of Mexico was shut in.

The (API) American Petroleum Institute data is due to be released later on today.

Technical view

Crude oil prices are likely to hit the upper slope line which is inside the Falling Wedge Pattern. Resistance line holds at $50.25 levels. A break above and close of an hourly candle could extend the rally towards $51.

crude oil prices are expected to move up to a limited level as the sentiment remains bearish. It could be an opportunity to take the new short position again. Selling pressure is expected to move towards $47-$49 level.

This article was originally posted on FX Empire

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