- Prices of the WTI have returned to sub-$70.00 area, or session lows.
- OPEC output clinched a YTD high in July.
- API, EIA weekly report next on tap. FOMC meeting also eyed.
Prices of the WTI are on the defensive on Tuesday and have broken below the psychological $70.00 mark per barrel.
WTI weaker on oversupply concerns
Prices of the barrel of the American reference for the sweet light crude oil dropped below the ley $70 mark on Tuesday after a survey from news agency Reuters showed the OPEC output rose to the highest level so far this year during July.
In fact, Reuters said the cartel increased its production by 70 kbpd in July to 32.64 mbpd, the largest level so far this year.
Further out, WTI remains apathetic following recent news citing President Trump saying he could meet with Iranian President Rouhani.
Later in the day, the API will publish its weekly report on US crude oil inventories ahead of Wednesday’s EIA report and Friday’s report on US drilling activity by Baker Hughes.
WTI significant levels
At the moment the barrel of WTI is losing 2.20% at $69.48 facing the next down barrier at $68.78 (low Jul.24) followed by $68.04 (100-hour sma) and then $67.08 (low Jul.18). On the other hand, a breakout of $70.97 (10-day sma) could aim for $71.39 (high Jul.30) and finally $71.69 (high Jul.13).
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