- Oil drops as Saudi Arabia pledged to keep markets supplied.
- Offered at 5-day EMA earlier today, WTI is now trading below the 61.8% Fib R of August-October rally.
Currently, WTI oil is trading at $69.15 per barrel, having hit a high of $69.62 earlier today.
The front-month contract was offered in Asia around the downward sloping (bearish) 5-day exponential moving average (EMAs) of $69.69 after Saudi Arabia pledged to play a “responsible role” in energy markets despite the increasing isolation over the killing of Saudi journalist Khashoggi.
Further, Saudi’s al-Falih informed markets on Monday that the Kingdom has no intention to cut supply in retaliation to potential sanctions against it over Khashoggi killing.
Still, the downside could be limited around yesterday’s low of $68.50 on concerns that OPEC heavyweights may not be able to compensate for the drop in Iran’s crude exports post-US sanctions.
The US sanctions against Iran’s energy sector are due to kick off on Nov. 4.
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