Oil price went higher on Wednesday, closed above $51 per barrel and it was for the first time since July last year. US official report showed that US crude oil stock fell in three consecutive weeks. Meanwhile, supply disruption continues, especially because of sabotage on oil facility in Nigeria. 

Energy Information Administration reported that US crude oil supply fell as much as 3.23 million barrels last week, in line with analysts’ projection. 

Meanwhile, separatist militant group called Niger Delta Avengers was reported had blown up an oil well owned by Chevron in Nigeria. The separatist group also refused negotiation with Nigerian government. 

Nigeria is one of the biggest oil producers in Nigeria and the chaos had pushed down Nigeria’s oil production to the lowest level in two decades. 

Oil price currently is testing technical intraday key resistance at 51.65. 20 MA and 50 MA are still rising on hourly chart so that we can say the intraday bias remains strongly bullish. If the price managed to break the key resistance, oil price possibly will continue the rally up to 52.15-52.56. However, note that hourly stochastic and CCI are overbought. Therefore, as alternative strategy, watch for bullish signal confirmation on a pull-back move to Fibonacci support area at 50.95-50.53 to go long with 51.22 as target and 51.65 in extension.

Be careful if the support 50.53 breaks because it will turn the intraday bias to bearish and possibly will be followed by bearish move to 50.22-49.83.