Oil markets take a breather as US supplies rise once again
- Oil markets continue to bid up on Iran sanction concerns, but US inventory pile-ups are helping to ease topside pressure.
- The US is looking to ease market tensions about global crude supplies, which largely lie at the US administration's feet to begin with.
Crude oil is off of recent highs with WTI crude barrels back into the 72.00 level after peaking at 72.72, driven higher by incoming US sanctions on Iran and concerns about immediate supply being able to cover the loss of Iranian production in global markets.
US crude supplies showed yet another gain, with US inventories showing a rise of nearly 3 million barrels in the week to September 21st, bringing to total count to over 400 million barrels of excess supply, reversing the market's forecast of a 1.3 million barrel decrease, and the added flow of US oil is helping to take WTI back down from recent highs, though US crude prices still remain well-elevated.
WTI levels to watch
2018's multi-year high remains strung up at 75.25, and the current run-up on a rising trendline sees the current ceiling capped at 72.72, the current week's high, with support resting at the last swing low of 68.00.
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
