- Political catalysts join demand-supply factors to question WTI moves.
- $62.50 and $64.70 seems nearby trading range to follow.
WTI is trading near $62.80 during early Asian sessions on Monday. Speculations of a supply increase from OPEC+ alliance to counter the US sanctions on Iran and Venezuela confines the black gold’s downside whereas Iran’s likely retaliation, geopolitical problems at Libya and recent data from Baker Hughes favor the bulls.
During last week, the US crude stock numbers flashed higher than expected increase and triggered the energy benchmark’s pullback from 2019 highs.
Adding to the weakness were comments from the US President Donald Trump that he had talked with Saudi Arabia and the energy giants are positive to his demand for oil supply increase. Though, the OPEC leader afterward denied any such talks.
Weekly data from Baker Hughes suggested that the US rig counts drilling for oil shed 20 marks, the biggest in three months, to 805 for the week ended on April 26.
While the US took measures to cut Iran’s oil exports to zero, the OPEC member retaliated with threats which the US Central Command chief General Kenneth McKenzie took seriously.
Elsewhere, Libya is still struggling with internal hostilities together with a power outage at Venezuela. Both these factors cut global oil supplies.
Oil traders will emphasize on this week’s stock details and news concerning the US, Iran, Libya and Venezuela for fresh impulse.
Technical Analysis
In addition to $62.50 and $61.70, 200-day simple moving average (SMA) around $61.00 could also question oil’s recent pullback.
On the flipside, $64.70, $65.60 and recent highs near 66.60 can lure buyers during the quote’s U-turn.
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