WTI battles $73 after OPEC+ panel sees risk of oil market imbalance after April 2022
|After a mode3st uptick on Tuesday, WTI (futures on Nymex) is back in the red, as the bears test the bullish commitments just below the $73 mark.
The renewed weakness in the US oil comes after Reuters divulged details from a confidential report, citing that an OPEC+ panel, the Joint Technical Committee (JTC) has warned of "significant uncertainties" and the risk of a potential global oil market imbalance after April 2022.
Key takeaways
Under a base scenario, OECD oil stocks would stand at 96 million barrels and 125 million barrels below the 2015-2019 average for the third and fourth quarters of 2021, respectively.
In 2022, a significant increase is seen, leading to an overhang of 181 million barrels by the end of the year.
The black gold has turned south once again, as it continues to face rejection above $73.50, despite a drawdown in the US crude stockpiles, as per the latest American Petroleum Institute (API) report published late Tuesday. The API report showed that the US crude inventories fell by 8.15 million barrels last week.
The Delta covid variant-induced risks of derailing global economic recovery and fuel demand growth concern also undermine the sentiment around WTI. Markets now look forward to the Energy Information Administration’s (EIA) weekly crude stocks report and the prevailing risk trends for fresh trading opportunities in oil.
At the time of writing, WTI drops 0.20% to trade at $72.86, heading back towards weekly lows of $71.97 reached on Tuesday.
WTI technical levels to consider
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.