Search ForexCrunch
  • IEA’s Birol says the oil market is very tight.
  • Iranian oil exports continue to fall ahead of U.S. sanctions.
  • Coming up: API and EIA weekly stock  reports on Wednesday and Thursday.

After making a corrective pullback to $73 from the four-year high that it set last week near $77, the barrel of West Texas Intermediate gained traction on Tuesday and rose above $75. Although it failed to extend higher, the barrel of WTI remains on track to settle in the positive territory as it adds 55 cents on the day near $74.70 as of writing.

Earlier today, Reuters reported that the Iranian oil exports continued to decline ahead of November 4, the date at which the U.S. sanctions go into effect, to pull investors’ attention back to the declining supply output. In line with these expectations, in an interview with Bloomberg TV, the International Energy Agency (IEA) Executive Director Fatih Birol said that the oil market was very tight.

“More supply of oil required, but demand is currently strong,” Birol stated and argued that the Q4 could be a challenging period for the oil market.

Later in the week, markets will be keeping a close eye on the weekly API and EIA stock reports. Because the U.S. markets were closed due to the Columbus Day Holiday on Monday, these publications will be released on Wednesday and Thursday, respectively, instead of the usual Tuesday and Wednesday.  

Technical levels to consider

With a daily close above $75 (psychological level), the barrel of WTI could target $75.75 (Oct. 1 high) and $76.90 (Oct. 3 high). On the downside, supports are located at $74 (daily low), $73.05 (Oct. 8 low) and $72.25 (20-DMA).