- Supply risks from Iranian sanctions, bullish API data underpin oil.
- Re-attempts $ 70 mark ahead of the US EIA fuel stocks data.
WTI (oil futures on NYMEX) reversed a dip to $ 69.50, as the bulls fight back control in a bid to regain the 70 handle.
The black gold pulled back from daily lows and now resumes its latest upbeat momentum, as sentiment around the commodity remains lifted by supply disruption concerns, fuelled by the looming US sanctions on Iran.
Meanwhile, a drawdown in the US crude stocks, as seen in the latest API inventory report, also collaborates to the buoyant tone seen around the barrel of WTI. The API data showed that the US crude stocks fell by 8.6 million barrels in the week to Sept. 7 to 395.9 million.
However, the bulls remain somewhat cautious amid ongoing US-China trade tensions and looming NAFTA talks between the US and Canada while the upcoming EIA crude inventories report also keeps the investors on the edge.
WTI Technical Levels
In the view of Jason Sen at DayTradeIdeas.com, “WTI Crude shot higher in the sideways trend to 7000. Because it is a sideways trend, there is a risk we will not follow through after the strong performance. Below 6960 risks a slide to minor support at 6925/20. On further losses look for 6870/60. Below 6850 risks a slide to 6805/00.A break above 7000 targets 7045/55. Above 7065 look for 7095/99.”
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