WTI extends rally to fresh multi-month highs above mid-$66s
|- US decides to end Iran oil sanctions waivers.
- Saudi Arabia gives the message that it could adjust its output in response to U.S. action.
- Coming up: API's weekly crude oil stock report.
Crude oil prices gained traction on Tuesday after the U.S. announced that it would not reissue waivers for Iranian oil imports and the barrel of West Texas Intermediate rose above the $66 mark for the first time since late October of 2018.
However, the WTI retraced its daily rally and turned flat on the day near $65.75 after reports of Saudi Arabia looking to ramp up its output with an aim to keep the oil market balanced following the U.S. action. Citing an OPEC source, Reuters reported that Gulf oil producers were committed to keeping the market stable and had the capacity to raise production. "But any decision to boost output has to be a measured one depending on demand, the sources said."
Although the market reaction to these headlines dragged the WTI back to its daily opening level of $65.65 ahead of the NA session, the WTI, once again, turned north and renewed its multi-month peak at $66.58 with American traders starting to price falling crude oil supply.
Later in the session, the API will publish its crude oil stock report for the week ending April 19.
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.