- Bulls taking back charge, buoyed by rising US-Iran geopolitical tensions.
- A bigger-than-expected build in the US API crude inventories weigh.
- All eyes on the US EIA crude stockpiles data for fresh direction.
WTI (oil futures on NYMEX) is seen reversing its corrective slide to 65.80 levels, as the bulls are back in control and regain the 66 handle, as the sentiment remains underpinned by the latest upbeat comments from the Saudi Arabian Energy Minister Al-Falih while the ongoing geopolitical tensions between the US also remain oil-supportive.
Al-Falih said that he thinks that “there will be an uptick in real demand but most likely we will keep some level of oil production management beyond June.”
Meanwhile, in evidence of intensifying tensions between the US and Iran, the Iranian Supreme Leader Khamenei said that “Iran is willing to negotiate with America only when the US lifts pressure and apologizes.”
On Monday, the US announced its decision to call off the sanction waivers on the Iranian oil importers, with the Asian buyers likely to be the most hit.
Despite the latest leg up, markets remain wary after the US American Petroleum Institute (API) weekly crude inventory report showed on Tuesday that the US crude stocks rose by 6.9 million barrels last week, more than expected.
Further, the recent broad USD strength could also keep the recovery limited in the USD-sensitive oil, as attention now turns towards the US EIA fuel stockpiles data due later today at 1430 GMT.
WTI Technical Levels
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