- WTI prices facing downside pressure as markets open the week to lagging demand.
- Supply constraints are bringing little challenge to current supplies.
Oil traders are holding steady with hands hanging over the sell buttons as global markets begin to buckle down ahead of impending further tariffs in the US-China trade war, which threatens to hamper energy markets.
Broader market expectations of increasing oil demand are getting hung up on trade angst, and the recent supply disruption fear from Iranian sanctions from the US is seeing little play in energies as traders brace for continued trade tariffs between the US and China.
The US also added two rigs to their current count of active drillers, bringing the total to 749, while US inventory figures also show the market struggling to bear the weight of US overproduction, and oil traders can expect to continue grappling with oil prices that are skewed to the downside.
Oil levels to watch
70.00/barrel represents a major technical barrier for WTI prices, and rising swing lows from mid-August’s 64.40 and last week’s 66.80 have US oil costs looking at the formation of a rising triangle on Daily candles, and failure by bulls to clear the 70.00 level will see crude slumping back towards recent lows.
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