Oil rises sharply after Iran mixed comments

Crude oil prices rallied on Wednesday and reversed previous day’s losses following mixed comments from Iranian oil minister.

West Texas Intermediate crude for March delivery closed 5.6% higher at $30.66 a barrel, having reached a session peak of $31.13 a barrel.

Iran’s oil minister expressed support for a plan to keep production ceiling by OPEC and non-OPEC countries, but he did not specify whether Iran will join the production freeze.

WTI technical perspective

“In the daily chart, the price is currently battling with a mild bearish 20 SMA, which has contained advances for most of these last two weeks, while the technical indicators have extended their recoveries within bearish territory, now approaching their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price has recovered above a sharply bullish 20 SMA, but the technical indicators have turned lower within bearish territory, suggesting some consolidation ahead of the next directional movement”.

Support levels: 30.10 29.40 28.60. Resistance levels: 30.80 31.50 32.10.