- Bulls regain poise in Europe amid potential additional US sanctions on Iran, Venezuela supply risks.
- Global supply concerns outweigh economic slowdown woes.
- Awaits US API crude supplies report for fresh trading impetus.
WTI (oil futures on NYMEX) built on the recent bullish momentum and went onto hit fresh five-month tops near 62.10 in the European session, having consolidated briefly near multi-month tops in early dealings.
The renewed leg higher in the black gold is mainly in response to increased expectations of the US imposing additional sanctions on the Iranian energy sector. It’s worth noting that the Iranian exports have been halved since the US imposed the sanctions last November.
More so, looming supply disruption concerns from Venezuela also continue to underpin the sentiment around the barrel of WTI alongside the OPEC output cuts. Supply from the OPEC hit a four-year low in March, a recent Reuters survey found.
Oil prices could extend the upside above the 62 level and test the 50-day weekly moving average (WMA) should the US crude supplies report show a drawdown in the US crude stockpiles in the last week. The American Petroleum Institute (API) crude inventory report is slated for release at 2030 GMT later today.
WTI Technical Levels
Share
