- On the defensive amid looming trade war concerns, re-attempts $ 74.
- But downside capped by tighter markets, as focus shifts to the US rigs count data.
WTI (oil futures on NYMEX?) trades listless so far this Friday, consolidating within an extremely tight range above the $ 73 mark, after having reached fresh three and a half year peak at $ 74 in the US last session.
The range trade in the barrel trade is mainly due to the upside being capped by the ongoing US-Sino trade war threats while the losses remain limited amid tighter markets, as the reports of oil supply disruption in Canada, Libya and Venezuela. More so, with the US’ plan to shut Iran out of oil markets also helps keep the downside cushioned.
The bulls took a breather after the latest upsurge, as worries over a rise in the production from Russia and Saudi Arabia outweighed the supply disruption threats, arising out Canada, Libya and Venezuela.
Attention now turns towards the US drilling sector activity report and macro news for fresh trading impetus on the prices.
WTI Technical Levels:
Resistances: $ 74 (multi-year tops), $ 74.50 (psychological levels), $ 74.96 (classic R2).
Supports: $ 72.94 (daily low), $ 72.50 (key support), $ 71.67 (5-DMA).
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