Oil jumps over 2% on Iran/U.S. tensions, U.S. dollar weakness and a possible 'dovish' Federal Reserve after an expected rate hike in May.

Chart 1

Chart 2

Oil jumps over 2% mostly on geopolitical tensions in the Middle East, namely the U.S. seizing an Iranian oil via a tanker heading towards Africa on the 24th April, the report flew under the radar of oil markets because it was not fully disclosed as a news item, until on the 28th April Iran bordered and seized a Turkish oil tanker near Omar heading towards the U.S.  

Refer to Chart 1.

The oil price has stayed bid above its 72 price support on U.S. Dollar weakness and China's demand for oil slowing.  Moving towards the 78 resistance, to which if the Federal Reserve does offer dovish guidance to the market ala a rate pause, we may see oil comfortably rest above 78 on its way to 80.   Refer, Chart 2.