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  • Tighter global supplies amid looming US sanctions remain supportive.
  • All eyes on the EIA crude stockpiles data for fresh insights on the US supply-side scenario.

WTI (oil futures on NYMEX) stalled its Asian recovery just ahead of the $ 75.50 level and turned back towards the 75 mark amid holiday-thinned light trading.

The bulls appear to take a breather, awaiting fresh impetus from the US crude inventory report due to be published by the US Energy Information Agency (EIA) later at 1430 GMT.

The black gold continues to remain supported amid the expectations of global supply threats that could arise after the US sanctions on Iran’s oil sector comes into force from Nov, 4th.

According to Reuters, crude exports from Iran, OPEC’s third-largest producer, Iran, are already falling. The drop in exports is reducing the impact of an OPEC production increase agreed in June.  

Meanwhile, the latest data from the American Petroleum Institute (API) released late-Tuesday showed that the US crude inventories increased by 907,000 barrels in the week to Sept. 28 to 400.9 million.

Markets continue to digest the latest comments from the Iraqi Oil Minister, as attention turns towards the EIA fuels stocks data.

WTI Technical Levels

According to Swissquote Bank Research Team, “Long positions above 74.90 with targets at 75.55 & 75.90 in extension. Below 74.90 look for further downside with 74.25 & 73.65 as targets. A support base at 74.90 has formed and has allowed for a temporary stabilization.”