WTI tracks Brent higher, eyes $ 75 ahead of API data

• Looming Norway strike boosts expectations of tighter markets and appears Oil-supportive.
• But gains remains capped by stronger US dollar and nervousness ahead of API crude inventories report.

WTI (oil futures on NYMEX) is closely tracking its European rival, Brent, as the supply disruption threats from a potential Norwegian strike.

Reuters reports that hundreds of workers on Norwegian oil and gas offshore rigs are due to strike on Tuesday after rejecting a proposed wage deal, a move which will likely affect the production of at least one field, Shell’s Knarr.

The black gold also remains supported on escalating concerns over supply shortage looming from Venezuela, Libya and Iran. Iran’s Vice President noted that Iran will still sell as much oil as it can despite ‘economic war’ with the US.

However, ongoing US dollar rebound combined with nervousness ahead of the US API crude inventories data appear to keep the upside restricted.

WTI Technical Levels:

Omkar Godbole, FXStreet’s Analyst, offers key technical levels for trading WTI in the day ahead:

Resistances:  $74.78 (resistance on hourly chart), $75.00 (psychological level), $ 74.57 (recent high).

Supports:  $73.65 (200-hour moving average), $72.97 (low of the big long-legged doji seen in the hourly chart), $72.11 (July 6 low).