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  • Global growth concerns on US-China trade spat and rising supply weigh down on the prices.
  • Risks remain to the downside, $ 66 is the key level to beat for the bears.

WTI (oil futures on NYMEX) tested the 67 handle once again earlier today, but failed to chew the offers near the last, now dropping back towards the mid-66s, despite a risk-on rally in the European equities.

The stalled upside in the barrel of WTI can be mainly attributed to the increased nervousness heading into the official US government weekly fuel stocks report due to be published by the EIA at 1430 GMT.

More so, the latest comments from the Iraqi Oil Minister Al-Luaibi on the US sanctions and oil supplies collaborates to the renewed weakness seen around the black gold. However, the downside appear capped, as the bulls derive support from positive global stocks, which pulled back from 20-month lows after the trade war truce between the US and China.  

All eyes now remain on the US EIA weekly crude stocks data due later today for fresh trading impetus on the commodity.

WTI Technical Levels

Resistance: 67.28 (5-DMA), 68 (round number), 68.56 (Oct 19 low).

Support: 66.50 (psychological level), 66.05 (Oct 24 low), 65.74 (Oct 23 low).