Home WTI retraces to sub-$62 area amid a lack of fresh clues
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WTI retraces to sub-$62 area amid a lack of fresh clues

  • WTI trims some of its gains after rising 20% at the week-start on news of attack on Saudi Arabian oil facilities.
  • The US blames Iran for the situation in Saudi Arabia.
  • Iran rules out meeting with the US President Trump and Rouhani.

Following its run-up based on geopolitical tension in Saudi Arabia, WTI trades near $61.70 during the Asian session on Tuesday.

The quote surged nearly 20% at the start of Monday’s trading in a reaction to the weekend news that Saudi Arabian oil facilities lost 50% output due to the drone attack, which Houthis took responsibility for.

The US, later on, claimed that Iran was behind the attack, which was follow-on supported by news reports showing the attacks were conducted through Iranian measures. However, Tehran denied the allegations while turning down any possibilities of a meeting between the US President Donald Trump and Iranian President Hassan Rouhani.

On a different page, Iran sized a vessel for allegedly smuggling 250,000 liters of diesel fuel to the  United Arab Emirates, as per Iran’s semi-official news agency ISNA.

While buyers are gradually booking their profits from the recent rally, the American Petroleum Institute’s (API) weekly crude oil stock report for the US will offer fresh insights for near-term trading direction. The API Crude Oil Stock last dropped -7.2 million barrels for the week ended on September 06.

Additionally, markets cautious mode ahead of this week’s Federal Open Market Committee (FOMC) and few fresh clues surrounding the US-China trade also limit the black gold’s trade sentiment.

Technical Analysis

Sellers await a downside break below July month high surrounding $61.00 in order to aim for $60.00 and an 11-month-old falling trend-line close to $59.00. On the upside, $63.15 and May month top near $64.00 seems to cap near-term advances.

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