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  • Bulls remain in control on dwindling US stockpiles, supply risks.
  • Weekend’s OPEC+ Algiers meeting to provide next direction.

WTI (oil futures on NYMEX) has entered into a phase of consolidation near two-week tops of $ 71.34, as the bulls await fresh impetus for the next push higher.

Oil prices rose nearly $ 2 on Wednesday after the weekly US EIA crude stocks data showed a drawdown in crude stockpiles for the fifth straight week to 3-1/2-year lows in the week to Sept. 14. The US crude inventories fell by 2.1 million barrels.

Moreover, looming supply disruption concerns from Iran, as the US readies to impose another round of sanction on the OPEC no. 3 oil exporter on November 4, also collaborated to the upside in the black gold.

Also, comments from the Iranian Oil Minister Zanganeh help keep the buoyant tone intact around the prices. Iran OilMin: Oil at $80 per barrel is a suitable price

Looking ahead, the bulls will continue to consolidate the sharp rally heading into the weekend’s meeting to be held between the OPEC and its allies (OPEC+) in Algeria. In the meantime, Friday’s US rigs count data will offer some near-term trading opportunities to the oil markets.

WTI Technical Levels

Resistances: $ 71.34 (2-week high), $ 71.76 (daily R1/ Fib R2), $ 72 (round number).

Supports: $ 70.56 (daily pivot), $ 69.98 (5 & 20-DMA), $ 68.56 (50-DMA).