Oil recovers from monthly lows but loses more than 7% for the week

• Oil advances on Friday but closes the week with a 7% loss. 
• Diminishing escalations in the Middle East put pressure on crude prices.

West Texas Intermediate (WTI) crude oil finished Friday with small gains, following five consecutive daily losses. Oil recovered from a monthly low of $54.72 a barrel scored on Thursday and it is poised to end the week just below $56.00/bbl.

WTI losses 7% for the week amid easing geopolitical tensions 

Oil recovered from one-month lows scored on Thursday and moved back to $56.00/bbl amid reports that Iran seized a UK ship in the Gulf of Oman. However, sweet light crude oil has faced strong pressure this week, losing more than 7%, amid rumours that Iran and the US could go back to the negotiation table, diminishing geopolitical tensions.

WTI significant levels

At the moment the barrel of WTI is gaining 0.41% on Friday at $55.93. On the upside, next resistances could be found at $57.37 (200-day SMA), $57.97 (20-day SMA) and $59.10 (100-day SMA). On the downside, immediate support is seen at $54.72 (monthly low, Jul 18) followed by $54.10 (Jun 20 low) and finally $53.10 (200-week SMA).