- Rising OPEC output, easing Iran-US tensions knock-off oil prices.
- WTI losing sight of $ 70 ahead of the US API crude inventory report?
WTI (oil futures on NYMEX) extends its retreat from weekly highs near $ 70.50 levels, with the bears now eying a break below the $ 69.50 support ahead of the American Petroleum Institute’s (API) crude stockpiles data.
WTI: Over-supply concerns back in play?
The barrel of WTI remains on the offers so far this Tuesday, mainly driven by re-emergence of oversupply concerns after a Reuters survey showed OPEC output rose in July to its highest for 2018. According to the survey, the OPEC increased production of 70,000 barrels per day (bpd) to 32.64 million bpd in July, the most this year.
Moreover, easing US-Iran geopolitical tensions, after the US President Trump agreed to meet Iran’s President Rouhani without any preconditions, combined with a broadly firmer US dollar also added to the weight on the commodity.
However, the losses may remain capped amid expectations for another draw in the US weekly crude stockpiles due to be published by the API later at 2030 GMT.
WTI Technical Levels
According to Denis Joeli Fatiaki, Chief Market Analyst at Leo Prime, “Crude WTI has been progressing slowly but steadily to the upside trading parallel to the bottom of the long-term price channel in the four hours price chart for almost two weeks. WTI/USD is currently trading at 69.30 and needs to hold above 69.20 to progress to the next target at 70.25. Failure to hold above 69.20 could push prices down to the bottom of the channel at 68.48.”
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