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  • Expectations of US crude stockpiles build, Iran sanctions waiver drag Oil lower.
  • USD weakness on the US midterm elections outcome could offer some respite to the bulls.

The bearish tone around WTI (oil futures on NYMEX) remains intact so far this Tuesday, despite several attempts by the bulls to regain the 63 handle.

The barrel of WTI continues to trade near seven-month lows of $ 62.52, as the sentiment remains dampened by the US oil waivers under Iran sanctions.

The US temporary exemptions will allow Iran to continue exporting crude to its biggest oil customers. Washington gave 180-day exemptions to eight importers – China, India, South Korea, Japan, Italy, Greece, Taiwan and Turkey, Reuters reports.

Further, mounting concerns that the global economic slowdown will bite into the demand for the fuel added to the weight on the black gold while markets remain expectant of another crude inventory build this week.  

Looking ahead, the US mid-term election results could drag the US dollar lower should the Democrats win both the House and Senate. This could offer some respite to the USD-denominated oil.

WTI Technical Levels

Resistance: 63.50 (psychological level), 63.95 (Nov 2 top), 64.43 (Aug 16 low).

Support: 62.50 (7-month lows/ psychological level), 61.81 (April low), 61 (round number).