- Oil has recovered from the week’s supply-fueled downside, but upwards momentum remains limited.
- US supplies are continuing to expand at a quicker pace than markets were expecting, and a failure of domestic demand to begin eating away at the overhang could see further downside.
Crude oil prices caught some lift on Thursday with WTI barrels knocking on 70.00 before settling just beneath the critical level heading through Friday’s trading.
American oil supplies continue to expand faster than markets initially expected, causing WTI prices to get dragged down from recent highs, though Thursday saw crude barrels recover their losses for the week and are now trading back into familiar territory, though oil costs are still leaning towards the downside with previous supply constraints beginning to dissipate and Russia-OPEC on pace to continue raising production limits.
WTI prices drifted lower in July and is resuming to trade back near consolidation levels after slipping from a multi-year high of 75.25.
WTI levels to watch
Failure to break below 67.30 has soon a floor priced in beneath WTI crude barrels looking forward, though resistance is declining from lower highs and the 70.00 level remains a significant point that bulls are struggling to jump over, while a break lower will see prices testing into June’s bottoms near 64.50.
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