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  • Crude oil remains under pressure, unable to recover.  
  • WTI erased daily gains and fell back under $63.00.

WTI (oil futures on NYMEX) dropped late during the US session back under $63.00 a barrel erasing gains. Near the end of the session was hovering around $62.85, practically flat for the day.  

Earlier today rose to $64.10 but it was rejected and turned to the downside. The barrel was unable to move off monthly lows on the day US sanctions on Iran officially started. The slide during the US session took place even amid a weaker US dollar, showing that speculative interest is still concerned about global demand.

Technical outlook  

The daily gain seems corrective after WTI was under strong selling pressure the previous five, and the risk of further declines is still strong according to technical readings, noted Valeria Bednarik, Chief Analyst at FXStreet. “In the daily chart, the 20 DMA maintains a strong bearish slope, now below the larger ones, while technical indicators remain in overbought levels, with no clear directional strength.”

According to Bednarik, in the short-term, the 4 hours chart, shows risk also skewed to the downside as selling interest around a bearish 20 SMA capped the intraday advance, while technical indicators resumed their declines within negative levels after correcting oversold conditions.