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  • Faces rejection just below $ 76 on Russian output news, firmer US dollar.
  • Tighter global supplies amid looming US sanctions remain supportive.

WTI (oil futures on NYMEX) is seen extending is corrective slide towards the $ 75 handle, having ran into fresh sellers near $ 75.90, the highest levels seen since November 2011.

The latest leg down in the barrel of WTI can be mainly attributed to the latest reports citing that the Russian oil output hit a post-Soviet high at 11.36 million barrels per day (bpd) in September.

More so, increased safe-haven bids for the US dollar strength intensifying Italian budget crisis and Brexit concerns, cap the upside in the USD-denominated oil. The USD index rises to 4-week top of 95.71 heading towards the Fed Chair Powell’s speech due late-Tuesday.

However, the prices will continue to derive support from a potential global supply disruption, likely to emerge due to the US sanctions on Iran’s oil sector that comes into force from Nov, 4th.

Meanwhile, Russia’s Deputy Energy Minister Sorokin told earlier today that Russia is unable to materially increase crude supplies to the Asian markets who are faced with the loss of Iranian imports due to existing transportation constraints.”

Looking ahead, the broader market sentiment and risk trends will continue to influence the black gold until the release of the American Petroleum Institute (API) fuel stockpiles data due later in the day.