- Iraq’s output forecast combined with US-China trade tensions keep a lid on oil prices.
- But bulls still underpinned by upbeat US drilling report and drop in Saudi’s production.
WTI (oil futures on NYMEX) traded on the front foot so far this Monday but struggles to extend the upside above the $ 69 handle amid mixed fundamental factors.
The barrel of WTI has entered a phase of bullish consolidation over the last hours, still underpinned by the news of a drop in the Saudi Arabian and numbers of the US rigs. Drillers cut two oil rigs in the week to Aug. 3, bringing the total count down to 859, Baker Hughes energy services firm said on Friday, as cited by Reuters.
However, the bulls remain unnerved as Iraq’s upbeat outlook on oil production combined with rising US dollar and escalating US-China trade tensions continue to weigh negatively on the black gold.
Looking ahead, all eyes remain on the US-China trade tensions and US crude supplies for fresh trading impetus.
WTI Technical Levels
According to Jason Sen at DayTradeIdeas.com, “WTI Crude held minor 1-week trend line resistance at 6900/6910 but above 6940 today allows a further recovery to 3-week trend line resistance at 7000/7010. Shorts need stops above 7045. A break higher targets 7115. Failure to beat minor resistance at 6900/6910 targets 6870, 6830/20 & perhaps as far as 6780/70 (we bottomed just 7 ticks above on Friday), before the range low at 6700/6690. Longs need stops below 6660. A break lower targets 6545 & 6500.”
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