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  • Oil markets are extending their slide as hopes for continued US oversupply run up against broader risk-off sentiment.
  • US crude oil is testing into quarterly lows as traders fall back in a stiff short run.

Oil markets are continuing to take steps lower as two-pronged pressures head off oil prices, with rising US barrel supplies coupling with falling broad-market sentiment at the hands of the still-growing US-China tradewar.

US oil markets have taken a step lower with the WTI slipping from the 67.00 level following US President Trump’s presidential decree that global oil markets have enough supply to make up for any constraints from US sanctions on Iran, which come into effect on November 4th.

As the US tradewar with China heats up, risk appetite continues to remain under threat, helping keep riskier assets under chains as investors brace for further economic fallout as the US and China aim further trade tariffs at each other with a fresh round of tariffs due to be announced by the US in early December.

WTI levels to watch

US crude oil is trading into three-month lows, slumping away from the 200-day moving average resting at 67.60, and a motivated break of the 64.50 level will see crude challenging the 63.50 level in short order.