- Expectations of tightening supplies increase as the US renews sanctions on Iran.
- Scope for a retest of $ 70 as US dollar weakens further, focus shifts to API crude data.
WTI (oil futures on NYMEX) is seen on a steady rise so far this Tuesday, mainly driven by increased expectations of tightening global supply, following the US’s renewal of the sanctions on Iran.
Analysts at the Australia and New Zealand banking group (ANZ) noted that the supply losses estimated from the US sanctions on Iran could range from 600,000 to 1.5 million barrels per day (bpd).
Additionally, broad-based US dollar weakness combined with a risk-on rally in the global equity markets also underpin the sentiment around the barrel of WTI. Upbeat US corporate earnings results have helped ease some pressure off the investors amid escalating US-Sino trade dispute.
Later today, traders remain focused on the US crude stockpiles data due to be published by the American Petroleum Institute (API) at 2030 GMT for fresh trading opportunities.
WTI Technical Levels
According to the Swissquote Research Team, “Long positions above 68.60 with targets at 69.30 & 69.90 in extension. Below 68.60 look for further downside with 68.25 & 67.75 as targets. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.”
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