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  • USD selling, Saudi Arabian OilMin comments lift oil prices.
  • Will it sustain the upside on the US API crude stocks data release?

WTI (futures on Comex) picked up fresh bids and rallied 1+% in the European trading, hitting fresh two-day tops at 64.22 after the bulls cheered the Saudi Arabian Energy Minister AL-Falih’s comments.

The Saudi Oil Minister said that the global oil output cuts could be well extended until the end of this year. His comments added further to the signs of tighter global markets and lifted the sentiment around the black gold. Markets already remain wary about the supply risks, in the wake of the Libyan civil unrest, the US sanctions on Iran and Venezuela.

Moreover, the ongoing weakness in the US dollar across its main competitors amid dovish Fed expectations and moderate risk-aversion also collaborated to the renewed upside in the barrel of WTI. A weaker greenback makes the USD-denominated oil cheaper for the holders in foreign currencies.

However, it remains to be seen if the bulls can sustain the upbeat momentum heading into the US weekly crude stocks report due to be published by the API later today at 2030 GMT.

Last week, the commodity tumbled following the rise in the US output and inventory levels while the US President Trump’s jawboning also weighed heavily on oil prices.  Trump urged the producer cartel, the  OPEC, to  raise output to soften the impact of US sanctions against Iran.

WTI Technical Levels