- The barrel of WTI met resistance just above the $57.00 mark.
- US-Iran geopolitical jitters remain unabated.
- EIA will publish its report on US supplies later today.
Prices of the barrel of the WTI appear to have found a tough barrier around the $57.00 mark so far this week.
WTI now looks to EIA
Crude oil prices have unexpectedly bypassed the recent effervescence between Iran and the UK regarding the seizure of two oil tankers, as traders look more concerned over the prospects of declining demand amidst the ongoing global supply glut.
On another front, the US and China are expected to resume trade talks in Beijing at some point during next week. The news helped to ease concerns on the global demand side, although a final deal still appears a long shot.
Later in the day, the DoE will release its report on weekly US oil supplies. Late on Tuesday, the API reported a nearly 11M barrel draw during last week, surpassing initial estimates, while driller Baker Hughes said oil rig count dropped by 5 during last week.
What to look for around WTI
Crude oil prices are extending the rebound from last week’s lows in the $54.70 area helped by rising geopolitical concerns in the Middle East. Traders, however, appear to have ruled out further escalation in tensions between Iran and the West, let alone any military action, mitigating the effervescence in the region somehow. In the meantime, alternating demand/supply concerns are expected to dictate the sentiment for the time being. As usual, we can find oil positives in the ongoing OPEC+ agreement to curb oil production until March 2020, tight US oil markets and the so-called ‘Saudi put’.
WTI significant levels
At the moment the barrel of WTI is gaining 0.23% at $57.14 and a surpass of $57.83 (21-day SMA) would aim for $59.16 (100-day SMA) and then $60.86 (monthly high Jul.15). On the downside, immediate contention emerges at $54.73 (monthly low Jul.18) seconded by $54.33 (50% Fibo of the December-April rally ) and finally $50.54 (monthly low Jun.5).
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