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  • Supply threats and OPEC cuts offset US-China trade war and global growth concerns
  • Oil to take cues from risk trends ahead of US weekly crude stockpiles data

WTI (futures on Comex) extends its recovery mode into a third straight day today and popped to regain the 59 handle briefly in the European trading amid mounting supply-side risks, as US-Iran tensions escalate.

Last hour, the Iranian Foreign Ministry spokesman said that Iran sees no prospect for negotiations with the US. His comments poured cold water on the US President Trump’s hopes of a US-Iran Summit in the coming months.  

Further, the US sanctions on the Venezuelan oil exports also add to the expectations of a potential supply deficit and lend support to the corrective upside in the black gold.

More so, the recent comments by the Iraqi Oil Minister, supporting the case for the OPEC oil output cuts extension beyond June, also continues to help keep the buoyant tone intact around the prices.

However, it remains to be seen if the barrel of WTI can sustain its renewed upside momentum amid softer risks tones, fuelled by global economic slowdown concerns and ongoing US-China trade war fears. Also, the US weekly crude stockpiles data will offer fresh insights on the US supply-side scenario, which will have a significant impact on the prices in the week ahead.

WTI Technical Levels