Search ForexCrunch
  • Oil’s rally losses strength but bullish bias remains in place.
  • Coming US sanctions to Iran continue to support crude oil.
  • Key data ahead: American Petroleum Institute (API) fuel stockpiles.

WTI (oil futures on NYMEX) correction from the highest level since November 2011 seen earlier today at $75.90 a barrel found support at $74.90. As of writing was moving off lows, trading at $75.40, down for the day but still more than $2 above last week close.

Data released today, showed a record production in Russia that contribute to the slide in crude oil and also a retreat of the US dollar. But the greenback lost strength after the begging of the US session and limited the slide in oil.

Despite today’s modest retreat, the fundamental and the technical perspective continue to point to the upside. US sanctions and tighter global supplies remain supportive, offset by an improvement in the outlook of the US dollar while from a technical perspective, no signals of a peak are seen so far.

WTI Short-term technical Levels

To the upside, immediate resistance might lie at $75.40, followed by $75.65 and the $76.00 area. On the flip side, support could be located at $75.20, before daily lows at $74.90 and followed by $73.75.