- Bears fighting for control amid rising in US crude supplies.
- Looks to test 2-month lows near $ 64.50.
WTI (oil futures on NYMEX) extends its consolidative phase around the $ 65 handle in the European session, as the bear await fresh impetus for the next push lower.
Focus on US-China trade talks
The barrel of WTI stalled its recovery from two-month lows just ahead of the $ 65 level, but held steady so far this Thursday, having found support from the renewed trade talks between the US and China likely to take place later this month.
However, the upside attempts get sold-off into the fresh concerns over rising US production and storage levels. The latest EIA weekly report showed that the US crude output rose by 100,000 barrels per day (bpd) in the week ending August 10, to 10.9 million bpd while the US crude inventory levels climbed by 6.8 million barrels, to 414.19 million barrels.
Attention now turns towards the US rigs count data due tomorrow for fresh direction. In the meantime, any developments between the US and China on the trade issue for any impact on the higher-yielding asset, oil.
WTI Technical Levels
FXStreet’s Analyst, Omkar Godbole, noted: “The 14-day relative strength index (RSI) is holding below 50.00, but well above 30.00, indicating there is room for further sell-off in oil prices. Consequently, oil could soon take out the 200-day MA support of $64.61 and drop towards the support of the trend line sloping upwards from the June 2017 low and Aug 2017 low, currently located at $62.90. On the higher side, a close above the 10-day MA would invalidate the bearish view. Currently, the key short-term MA is located at $67.14.”
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