WTI supported by gasoline demand, Venezuela production and Middle-East tensions

• WTI rises as Saudia Arabia and Iran tension intensify.
• WTI strong bull breakout is likely going to open the gatesfor atest of 65.00. 

Crude oil is trading at around $63.40, up more than 2.00% on the day with both, WTI and Brenttrading at their highest levels since late February. 

Springtime seasonal is upon us as Crude oil is being supported by several factors: record gasoline demand, the Venezuelan production is plummeting, increasing tensions between Iran and Saudi Arabia are among the factors supporting oil prices today. Donald Trump is spending the day with Saudi Crown Prince Mohammed Bin Salman and some analysts are speculating that the US and Saudi Arabia will harden the tone against Iran. 

The US might upgrade sanctions on Iran and that could affect output from the country. Trump told European leaders they have to “fix the terrible flaws” in the Iran nuclear deal or the US would refuse to extend its sanctions relief on the country.

In the US, supply from the Cushing Oklahoma decelerated to 326.000 barrels from Tuesday to Friday, according to sources. The decrease is synonym of strong demand for crude. According to analysts, the shale oil production is having less of an impact than in the past. 

WTI daily chart

On Tuesdayday the bull broke above the descending trendline, and  US oil reached $63.80, the 61.8% Fibonacci retracement from the January-February downtrend. It looks as though the gates for higher prices are now open and the next resistance is seen not far away at $64.25 former swing high, followed by $65.00,  the 78.6% Fibonacci retracement of the same decline. To the flip side, support is now seen at $62.50 which is the breakout point and then at $61.47 which is the 38.2% Fibonacci retracement. The RSI and MACD are both constructive.