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  • Trade tensions negate the bullish API report and weaker US dollar.
  • Turns cautious ahead of the US Energy Information Administration  (EIA) crude supplies data.

WTI (oil futures on NYMEX) stalled its Asian consolidative mode just below the $ 69 mark, having faced aggressive selling pressure in the European session, as the bears now target the 68 level ahead of the EIA crude inventories data and US-EU trade talks.

WTI: Failed once again near $ 69

The barrel of WTI erased most gains, as the sellers returned to the markets amid a typical risk-averse market environment heading into the Juncker-Trump meeting due later today. Both the leaders are expected to discuss on the trade tensions and try to reach a free trade deal.

However, the retreat may remain capped amid expectations of a drawdown in the US weekly commercial crude stockpiles, especially after the API showed that the US crude inventories fell by 3.2 million barrels in the week to July 20 to 407.6 million barrels.            

Further, concerns over the Venezuelan oil production amid economic and financial crisis combined with broad-based US dollar weakness could also keep the sentiment somewhat buoyed around the black gold.

Markets now await the official US crude supplies figures from the EIA that will be reported at 1430 GMT on Wednesday.

WTI Technical Levels

According to Joshua Gibson, Analyst at FXStreet, WTI “flattened out above the recent low of 67.25 after declining from a recent high of 75.35, but bulls are having a hard time driving prices beyond the last swing high near 71.70, with further downside pressure from the July 6th low of 72.20.”