Oil prices struggling, WTI stuck near $70.00

• Crude is hesitating near recent lows as traders await supply developments.
• The US is still seeking to lock Iran out of global markets, keeping prices underpinned at key levels.

Crude oil futures are continuing to slump near lows, and WTI prices are remaining trapped near the major $70.00 barrier.

Oil prices plunged 5% on Wednesday after it was reported that Libya’s export terminals are set to come back online soon, but the still-ongoing Syncrude shortage in Canada has yet to be resolved, and WTI could be pulling some last-level support from the constraint on US reserves, which have contracted by more than expected recently as US refineries struggle to tighten up the slack from restrained Canadian crude supplies.

OPEC and Russia have jointly increased their output production from June, helping to alleviate oil prices, which struck into multi-year highs recently as demand steadily chips away huge oversupplies that hung over crude markets from US overproduction, though the US’ mission to see Iran locked out of global oil markets from November is seeing bouts of fear seep into crude prices, keeping a floor underneath the recent drops.

WTI levels to watch

With WTI knocking back into the 70.00 key barrier, support is firming up from late June’s swing high of 69.50, while a bullish turnaround will have to face resistance at last week’s dip of 72.20, with highs capped off by multi-year highs near 75.35.