- Oil walking back on US supplies jump after topping out above 75/barrel.
- US-Iran sanctions, supply constraints will continue to bolster oil prices moving forward.
Oil is trudging lower with WTI crude testing into 72.80 in Asia trading.
WTI peaked at 75.35 this week, driven higher by shortfalls in supplies from both Canada and Libya, while the US’ push to see Iran locket out of global oil markets is adding to bullish pressure on oil prices.
US President Trump tweeted at OPEC this week, demanding the oil cartel “do something” about oil prices, though the group is unlikely to make any quick changes, after OPEC already agreed internally to make an output increase beginning in July.
According to the US Energy Information Administration, US crude stocks rose by an unexpected 1.3 million barrels last week, and the supply jump is helping to walk WTI back from its three-and-a-half year high.
WTI levels to watch
WTI crude oil is backing away from its recent high of 75.35, and current support is thin at the week’s low near 72.60, with further support from the last technical swing high at 69.50, while a bullish continuation will have to climb back over yesterday’s high at 74.80 before challenging the current cap at the key high.
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