- US-Iran trade tensions keep the prices underpinned.
- Looks to regain the $ 71 mark ahead of the EIA crude stockpiles data.
WTI (oil futures on NYMEX) regained poise and clocked fresh five-week highs just shy of the $ 71 level in the European session, stalling its overnight consolidative mode.
The black gold caught a fresh bid-wave in US last session and went onto test the $ 71 mark, as the bulls were boosted by a bigger-than-expected drawdown in the US crude inventories. The American Petroleum Institute (API) reported a much-higher-than-expected 9.2 million barrel drop in the US crude stockpiles in the week to June 22 to 421.4 million barrels.
The barrel of WTI derived further support from the renewed tensions between the US and Iran after the US asked its allies to cut all imports of Iranian oil from November 4th. More so, the ongoing a supply outage at Syncrude in Canada combined with concerns over the Libyan exports also kept the buoyant tone intact around the prices.
In the day ahead, it remains to be seen if WTI can extend its rally beyond $ 71 mark, as attention shifts towards the US crude inventories data due to be published by the Energy Information Administration. (EIA) for fresh trading impetus.
WTI Technical Levels:
Resistances: $ 71.50 (psychological levels), $ 71.75 (classic R1), $ 72 (round number).
Supports: $ 69.75 (daily pivot), $ 69 (key support), $ 68.73 (5-DMA).
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