- Oil opens the week lower on rising supply risks from Iran.
- US-China trade uncertainty and holiday-thinned markets to keep trading subdued.
- Focus remains on trade updates and US weekly crude supplies report.
WTI (oil futures on NYMEX) kick-started a brand-new week on the back foot, reversing Friday’s solid comeback from four-day lows of 55.76. The black gold, however, manages to hold the 57 handle amid holiday-thinned quiet trading. The US and Canadian markets are closed today in observance of their respective national holidays.
The prices failed once again to hold above the 200-day Simple Moving Average (DMA) at 57.36 for the sixth straight session so far, as the bulls lack vigor amid a lack of clarity on the likely US-China trade deal while rising US crude stockpiles combined with broad-based US dollar strength also continue to hamper the sentiment around the commodity.
The latest downtick in the barrel of WTI can be mainly attributed to the weekend’s comments by the US President Trump on the US-China trade deal as well as to the discovery of a new oil field in Iran that has an estimated 53 billion barrels of crude. Rising oil supplies from Iran will only add to the existing global oversupply concerns and threaten oil’s upside attempts.
Next of note for the oil markets remain the US crude supply reports due later this week while the sentiment around the US-China trade issue will remain the main market motor.
WTI Levels to watch
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