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  • Breaks higher on supply risks amid Venezuela and Iran sanctions, OPEC cuts.
  • But gains could be limited by rising US supplies and risk-off sentiment.

The bulls fought back control in the European session, now pushing WTI (oil futures on NYMEX) back towards the 57 handle, in the wake of tightening global markets amid ongoing OPEC output cuts combined with supply risks from the US sanctions on Venezuela and Iran.

Reuters reported earlier today that Venezuela’s state-run oil firm PDVSA this week declared a maritime emergency, citing trouble accessing tankers and personnel to export its oil amid the sanctions.

Meanwhile, the US State Department Official noted that talks are going on with all of the 8 countries that have received waivers in November, as Washington seeks to push Iranian oil purchases to zero.

However, it remains to be seen if the black gold can sustain the renewed upside, as surging US supply continues to weigh on the investors sentiment. The latest US EIA report showed that the US crude oil stockpiles rose much more than expected last week, with inventories up by 7.1 million barrels to 452.93 million barrels.

Further, the global economic growth downgrade by the OECD as well as the persisting risk-off action in the European equities could also cap the gains in the commodity. Looking ahead, the focus will remain on the broader market sentiment for fresh trading impetus.

WTI Technical Levels

Overview:
       Today Last Price:  56.65
       Today Daily change: 45  pips
       Today Daily change %:  0.80%
       Today Daily Open:  56.44
Trends:
       Daily SMA20:  55.69
       Daily SMA50:  53.25
       Daily SMA100:  54.2
       Daily SMA200:  62.06
Levels:
       Previous Daily High:  56.66
       Previous Daily Low:  55.73
       Previous Weekly High:  58.06
       Previous Weekly Low:  55.19
       Previous Monthly High:  57.92
       Previous Monthly Low:  51.56
       Daily Fibonacci 38.2%:  56.09
       Daily Fibonacci 61.8%:  56.3
       Daily Pivot Point S1:  55.89
       Daily Pivot Point S2:  55.35
       Daily Pivot Point S3:  54.96
       Daily Pivot Point R1:  56.82
       Daily Pivot Point R2:  57.21
       Daily Pivot Point R3:  57.75