- Lifted by reports of US crude stockpiles draw and renewed USD weakness
- Iran oil supply threats amid US sanction continue to offer buoyancy.
Following a brief phase of upside consolidation in Asia, WTI (oil futures on NYMEX) caught a fresh bid-wave in Europe and regained ground above the $ 66.50 level, as the European traders reacted positively to a drop in the US crude stockpiles, reflected by the American Petroleum Institute (API) data released late-Tuesday. The US crude stocks fell last week by 5.2 million barrels, more than three times the drop analysts expected, API reported.
Moreover, markets cheered the outlook for tighter global crude supplies on prospects of falling crude exports from Iran, the OPEC’s no.3 oil producer, as the US gears up for additional sanctions on Iran in November, targeting the country’s oil sector.
Furthermore, the latest leg higher can be also attributed to the renewed US dollar weakness across the board, as the sentiment around the buck remains weighed down by Trump’s Fed criticism and Cohen’s guilty plea. A weaker US dollar makes the USD-denominated oil cheaper for the holders in foreign currencies.
Later today, the commodity will get influenced by the US official government crude inventories data, as published by Energy Information Administration (EIA) at 1430 GMT ahead of the FOMC minutes release due at 1800 GMT.
WTI Technical Levels
According to the Swissquote Bank Research Team, “long positions above 1192.00 with targets at 1199.00 & 1202.00 in extension. Below 1192.00 look for further downside with 1187.50 & 1184.00 as targets. The RSI advocates for further advance.”
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