- Expectations of OPEC, Russ production ramp up and rising US output knocks-off oil.
- Holiday-day thinned markets to leave oil-price recovery limited.
WTI (oil futures on NYMEX) is seen consolidating its rebound from six-week lows of $ 65.81, as the bears continue to guard the $ 67 barrier amid looming concerns over the OPEC and non-OPEC’s plans to increase crude supplies.
Saudi Arabia and Russia are considering easing the supply curbs, in order to counter the output drop predicted from the Venezuelan crisis and amid prospects of the US sanctions on Iran’s oil exports.
Adding to the downbeat tone around the black gold, the US energy firms added 15 rigs looking for new oil in the week ended May 25, bringing the rig-count to 859, the highest level since 2015. The rise in the rigs count numbers indicates that the US output surge will continue in the coming months.
Meanwhile, the broad-based US dollar pullback also continues to exert the bearish pressure on the USD-sensitive barrel of WTI, as the focus shifts towards the weekly US crude inventory data for fresh direction on the prices.
WTI Technical levels
According to Peter A Rosenstreich, Chief FX Analyst at Swissquote Bank SA, “Crude oil has broken its support at 66.66 (25/01/2018 high), confirming a strong bearish momentum. Hourly support and resistance are given at 65.56 (17/04/2018 low) and 73.56 (28/11/2014 high). The technical structure suggests further short-term upward moves.”
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