WTI: Mixed political/trade headlines hold prices below 200-DMA
|- Trade positive news/headlines confront Iran’s latest shift to a more conciliatory tone.
- API data, qualitative catalysts will provide fresh impulse.
Considering mixed sentiment surrounding the latest shift in Iran’s tone and the US-China trade positive news, WTI seesaws near $56.00 during early Tuesday.
While news of the next week’s trade meeting between the US and Chinese diplomats provide positive signals for the energy benchmark, a shift in the tone of Iran’s key lawmakers indicate brighter chances of an end to the recent geopolitical tensions and drags the black gold below 200-day moving average (200-DMA).
Recently, the US Secretary of State Mike Pompeo announced action against Chinese company purchasing oil from Iran despite the US sanctions.
Also weighing on the price could be the US Dollar (USD) strength on the Congress’ ability to reach a budget deal and a latest pullback in the speculations of Fed’s steeper rate hike.
Moving on, investors may emphasize weekly details of the American Petroleum Institute’s (API) US Crude Oil Stocks. During the week ended on July 12, the inventories decline by -1.401 million barrels.
Technical Analysis
200-DMA around $57.00 remains as a short-term tough nut to crack for the oil buyers, a break of which can challenge late-June low close to $57.80 ahead of targeting $60.00 during further upside. Alternatively, current month low around $54.70 limits near-term declines.
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