- Cautious amid ongoing US-China trade row.
- Awaits fresh impetus from the US NFP and rigs count data.
WTI (oil futures on NYMEX) extends its choppiness into the European session, fluctuating between gains and loses around the $ 73 handle, as markets weigh in the consequences of the US-China trade war.
The black gold lacks direction, as markets refrain to create any fresh positions amid persisting US-China trade tensions while nervousness ahead of the US NFP and drilling activity report also keep the bulls at bay.
However, the losses remain restricted, as the US dollar remains broadly undermined, which offers some support to the USD-sensitive commodity. A weaker greenback makes the USD-denominated oil cheaper for its foreign buyers and vice-versa.
Meanwhile, markets digest the latest Reuters report that Iran says it is fully prepared for a collapse in the nuclear deal, which could have an impact on oil prices. Note that Iran is the OPEC’s no. 3 oil producer.
WTI Technical Levels:
Resistances: $ 73.47/64 (daily pivot/ 5-DMA), $ 74 (round number), $ 74.40 (classic R1/ R2).
Supports: $ 72.62 (June 2nd low), $ 72.09 (Fib S2), $ 71.50 (psychological levels).
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