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  • Some improvement in market sentiment favored a pullback in crude oil prices. 
  • Wall Street erased losses while the US dollar holds to losses. 

Crude oil prices lost ground during the American session and moved away from multi-month highs. Tensions in the Middle East boosted the price of the WTI barrel to $64.72 at the beginning of the week, the strongest level since April. As of writing, it trades at $63.00 marginally below the level it closed on Friday. 

In Wall Street, main stocks indexes are posting mix results. After a sharp negative opening, now the Dow Jones is down just 0.12% and the Nasdaq gains 0.19%. In Europe, indexes finished lower but far from the bottom. 

Investor’s mood improved following comments from White House adviser Conway about the US negotiating a deal on nuclear weapons with Iran. Still, fear appears to be dominating the environment. 

Over the last hours, the US dollar recovered some ground contributing to the decline in crude oil prices. A rebound in US yields supported the move higher of the greenback that measured by the DXY is still in red but far from the lows. 

Also inventory data last week showed a larger-than-expected decline in crude stocks. On Tuesday, a new report from API is due. Data from the US on Monday came in above market consensus but market participants mostly ignored it. The Markit Services PMI for December stood at 52.8 above the 52.2 of the preliminary reading. 

WTI Technical levels