- Off-two week highs, stuck in tight range near $ 68.50 amid ongoing US-China trade spat.
- Subdued US dollar trading and US sanctions on Iran remain Oil-supportive.
WTI (oil futures on NYMEX) stalled its correction from two-week tops of $ 69.31 and entered a phase of consolidation this Monday, as bulls take a back seat amid a lack of fresh fundamentals and holiday-thinned trading.
The prices remain contained in a tight range, as the upside remains capped by persisting US-China trade tensions, after both the countries ended the trade talks inconclusively last week.
Meanwhile, the bulls continue to defend the downside, in response to the renewed weakness seen around the US dollar, following Fed Chair Powell’s dovish remarks on the interest rates. Further, expectations of tightening global supplies, as the US considers additional sanctions on Iran in November, targeting its oil sector. Iran is the OPEC’s no. 3 oil producer.
Looking ahead, the black gold awaits the weekly US crude stockpiles data for fresh direction on the prices, as falling rigs count and a drop in the US crude inventories continue to underpin the barrel of WTI.
WTI Technical Levels
The Swissquote Bank Research Team writes: “Long positions above 67.60 with targets at 68.50 & 68.90 in extension. Below 67.60 look for further downside with 67.35 & 66.80 as targets. The RSI shows upside momentum.”
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