- Supply risks from Iranian sanctions negated by renewed US-China trade worries.
- Bulls take a breather ahead of the US weekly supplies data from the API.
WTI (oil futures on NYMEX) ran into offers just below the $ 68 mark, as the safe-haven demand for the US dollar regained strength amid a renewed risk-aversion wave, triggered by fresh headlines over the US-China trade spat.
According to the World Trade Organization (WTO) meeting agenda, China is said to ask the WTO for authorization to impose trade sanctions on the US.
More so, increased nervousness ahead of the US fuel stocks data, due to be published by the API, kept a check on the upside. However, looming supply risks from the US sanctions on Iran continues to lend support to the black gold.
Further, markets turn cautious ahead of next week’s OPEC + meeting in Algiers to discuss the oil output policy for the coming months.
WTI Technical Levels
In the view of Jason Sen at DayTradeIdeas.com, “WTI Crude holding below 6800 keeps the outlook negative targeting 6755/45 (we dipped back to here after rejecting our selling opportunity at 6860/70 yesterday) & the low at 6686, just above our next downside target of 6680/75. This is minor short term Fibonacci support at so it is not a surprise that it held last week, but is unlikely to hold for long. A break lower targets 6650, 6610/00 & perhaps as far as 6570/60. Outlook negative with first resistance at 6800/10 but above here meets a selling opportunity at 6860/70. Stop above 6900.”
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