- Libyan force majeure and weaker DXY boosts the prices.
- Bulls take a breather ahead of the API crude stockpiles report.
WTI (oil futures on NYMEX) eased-off fresh three and half-year highs reached at $ 74.83 in early Europe and entered into a consolidative phase over the last hours, as markets now look forward to the American Petroleum Institute (API) crude inventories report for the next push higher.
The black gold got a lift in the overnight trades by Reuters’ report that Libya has declared a force majeure on two of its key oil facilities, threatienng the country’s exports. Libya halted operations on loadings from Zueitina and Hariga ports on Monday, resulting in 850,000 bpd of supplies being disrupted. Meanwhile, an ongoing Canadian outage also boosted the US oil to levels not seen since November 2014.
Further, the ongoing weakness in the US dollar versus its major rivals also collaborates to the bullish tone seen in the barrel of WTI. A weaker greenback makes the USD-denominated oil cheaper for the holders in foreign currencies.
All eyes now remain on the API weekly crude supplies data for near-term trading opportunities.
WTI Technical Levels:
Resistances: $ 75 (multi-year tops), $ 75.50 (psychological levels), $ 75.80 (key resistance).
Supports: $ 73.96 (5-DMA), $ 73 (key support), $ 72.62 (yesterday’s low).
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