Crude oil prices were seen rebounding over the week after price action briefly fell to lows of 67.42.

The recovery in the WTI crude oil prices came as the commodity was seen rising to fresh highs of $69.92.

The bullish momentum in crude oil prices continues to be supported by the build up of bullish fundamentals.

At the very core, the upcoming U.S. decision on re-imposing sanctions on Iran has raised concerns that the country could once again be cut off from the oil markets.

The U.S. administration is expected to take a decision this week on 11th of May.

However, other nations that were part of the nuclear accord in 2015 continue to urge the United States from taking harsh measures.

Iran, for its part has vowed not to back down and said it would retaliate if the United States would change the deal struck in 2015 and was ratified by five other countries including the U.S., Germany, France, Russia, China and the United Kingdom.

From a technical stand point we expected crude oil prices to dip to the main support level seen at $65.80 – $65.50.

However, failure to retest the level saw prices rebounding off the dynamic support from the rising median line.

This led to WTI crude oil prices pushing to new yearly highs.

The gains come as the analysts expect that a potential supply cut off from Iran could boost prices further.

The gains in crude oil however seem to be a bit limited especially with the mentioned support level still pending for a retest.

In the near term, we expect WTI crude oil prices to potentially correct back to this level.

Given the bullish trend in oil prices, it is ideal to take long positions from the support level as we expect oil prices to post a strong rebound and maintain its bullish trend.