Oil takes back most of early losses

Crude oil prices managed to take back most of its early losses and settled only slightly lower on Tuesday amid easing Brexit fears.

However, reports of a cease-fire between Nigeria’s government and rebels, was a factor weighing on oil prices. Nigerian government brokered a 30-day truce with the Niger Delta Avengers, a terrorist group that declared war to oil companies and attacked multiple pipelines over the past months.

West Texas Intermediate crude for August delivery settled at $49.85, down 11 cents, or 0.2% on the day.

WTI technical perspective

“Ahead of US weekly stockpiles reports, which are expected to show declines, the daily chart present a neutral stance, as the price is still moving back and forth around a horizontal 20 SMA, whilst the technical indicators head nowhere around their mid-lines,” said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the price came back strongly after nearing a strongly bullish 20 SMA, whilst the Momentum indicator keeps heading lower within positive territory, and the RSI indicator consolidates around 61,  all of which points to keep the upside limited.”

Support levels: 49.20 48.55 47.90. Resistance levels: 50.00 50.65 51.30.