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  • The U.S. – China trade conflict weighs on commodities.
  • Iranian crude oil exports continue to decline.

Crude oil started the week on a positive note as latest reports revealed that Iranian crude oil exports continued to decline amid the U.S. sanctions. The barrel of West Texas Intermediate marched higher toward the $70 mark during the first half of the day but reversed its course in the NA session as the latest trade headlines raised concerns over the potential negative impact of the U.S. – China trade conflict on the world oil demand.

Commenting on Iran’s oil supply, “we believe that the full effect of the Iranian oil sanctions has yet to be seen and we feel that the next 5-6 week anticipatory phase of the official sanctions will associate with steady speculative buying interest,” Jim Ritterbusch, president of Ritterbusch and Associates, told Reuters on Monday.

On the other hand, Bloomberg claimed that sources with direct knowledge of the matter said that the White House could announce 10% tariffs on $200 billion worth of Chinese good as early as Monday to eliminate the upbeat mood surrounding crude oil prices. As of writing, the barrel of WTI was trading at $68.70, losing 0.4% on the day.

Ahead of the weekly crude oil stock reports released by the API and the EIA, investors will be focused on the developments surrounding tariffs.  

Technical levels to consider

The first support for the barrel of WTI could be seen at $68 (Sep. 14 low) ahead of $67 (Sep. 6 low) and $65.70 (Aug. 13 low). On the upside, resistances align at $70 (psychological level), $71.35 (Sep. 4 high) and $72.90 (May 22 high).

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