- Risk-recovery offers extra legs to the oil-price rebound.
- $ 74 mark – A tough nut to crack amid concerns over rising Saudi, Russia output.
WTI (oil futures on NYMEX) failed to close the bearish opening gap, as the sellers guarded the $ 74 levels, in the wake of persisting worries over rising supplies from Saudi Arabia and Russia that continued to dampen the investors’ sentiment.
More so, oil prices remain weigh down by escalating US-Sino trade tensions while the latest German political woes curbed the appetite for the higher-yielding assets such as equities, oil etc.
The barrel of WTI opened the week with a sharp bearish gap after Asia reacted negatively to the President Donald Trump’s tweet that Saudi Arabia’s King Salman bin Abdulaziz Al Saud had agreed to pump more oil, “maybe up to 2,000,000 barrels”.
Looking ahead, light trading is expected in the black gold, as Canada celebrates Canada Day, with all eyes now on the weekly US crude supplies report for the next direction.
WTI Technical Levels:
Resistances: $ 74.46 (multi-year tops), $ 75 (psychological levels), $ 75.30 (classic R3).
Supports: $ 73.55 (5-DMA), $ 73 (key support), $ 72.62 (daily low).
Share
