WTI: Sellers return in Europe, drops to $ 69.50 ahead of EIA

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  • Bears continue to guard the $ 70.00 barrier, despite broad USD weakness.
  • Oil turns cautious heading into the US EIA fuel stocks release at 1430 GMT.

The Asian recovery in WTI (oil futures on NYMEX) got sold-off into the $ 70 barrier in the European morning, as markets turned cautious ahead of the weekly US crude stockpiles report due to be published by the Energy Information Administration (EIA) later on Wednesday.

Oil traders prefer to be on the back foot after the American Petroleum Institute (API) crude inventories data showed a build last week. The US crude inventories rose by 1.2 million barrels to 397.1 million in the week to Sept. 14.

However, the downside might remain cushioned amid a broadly softer US dollar, looming supply risks from US sanctions on Iran and the recent Saudi Arabian comments. Saudi Arabia noted yesterday that it is comfortable with Brent prices above $ 80/ barrel.

WTI Technical Levels

Resistances: $ 69.91 (Sept 14 high), $ 70.50 (psychological level), $ 71.26 (Sept 12 high).

Supports: $ 69.13 (5 & 20-DMA), $ 68.52 (50-DMA), $ 68.36 (Sept 13 low).

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