Oil caught between Middle East tensions and oversupply, WTI holding near $68.00

Crude oil is struggling to develop momentum, and WTI spots are trading near 67.80.

WTI spot prices are getting tugged around the map as the US' consistent overproduction is applying greater and greater pressure on prices despite the OPEC's best efforts to cut off supply in an effort to give demand a chance to catch up. On the other side of the same coin, the Middle East is roiling politically as the US looks set to withdraw entirely from the Iran deal, a collection of sanction waivers made to reward Iran for dropping their nuclear programs. If the US pulls out of the Iran deal and reimposes stiff sanctions on Iran, the waiver plan will fall apart and Iran will surely restart their nuclear development program, which more than likely involves weapons as well as power, which will drive the Middle East into a furor as Israel and Iran clash.

The US Energy Information Administration (EIA) reported a buildup of another 6.2 million barrels of crude on Wednesday, bringing the running total to over 435 million barrels.

WTI levels to watch

Prices are continuing April's consolidation near multi-year highs, and as FXStreet's own Matias Salord noted, "To the upside, resistance levels might be seen at $68.15 (May 2 high), $69.00 and $69.55 (Apr 18 high). On the flip side, support might lie at $67.70, $66.80/98 (May 1 & 2 low) and $66.70."