- Crude oil back on the rise after a brief snap lower on Tuesday.
- Constrained US supplies and Iran sanctions are keeping oil traders’ expectations on the high side.
Oil is back on the rise with WTI reaching back over the 74.50 level in early Wednesday trading.
Oil is continuing to push higher after hitting a floor of 72.70 on Tuesday, and oil prices continue to be driven upwards by constrained supply from Canada and Libya, while OPEC’s plan to increase production limits from July is doing little to stop crude’s march higher as traders continue to worry about future constraints from US trade sanctions on Iranian.
According to the American Patrol Institute (API), US fuel inventories fell by 4.5 million barrels, with the larger-than-expected drawdown mostly a result of Canada’s out-of-service Syncrude systems, which normally produces 360,000 barrels per day.
WTI levels to watch
Current swing lows are setting support at 72.70 and 72.20, while an upward push will have to break through the current week’s high of 74.90 before challenging the 2018 peak of 75.25.
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