WTI: Bears target $ 73 mark ahead of EIA data

Libyan news combined with USD buying accelerates the declines in WTI.
But downside holds amid expectations of a draw in the US crude inventories.

Dhwani Mehta FXStreet

WTI (oil futures on NYMEX) witnessed good two-way businesses so far this Wednesday, now facing a double whammy amid risk-off in the European equities on one hand while reports that Libya announced re-opening of terminals accentuated the retreat from near $ 74 handle.

Libya’s Tripoli-based National Oil Corporation (NOC) said on Wednesday that four export terminals were being reopened after eastern factions handed over the ports, Reuters reported earlier today.

Meanwhile, escalation of the trade war between the US and China, after the US threatened to impose tariffs on extra $ 200 billion worth of Chinese goods, spooked investor sentiment and knocked-off the higher-yielding black gold.

However, the downside appears cushioned amid increased expectations that the EIA weekly crude stockpiles data will show a drawdown of near 4 million barrels last week. The EIA data will be reported at 1430 GMT.

WTI Technical Levels:

Swissquote Bank Research Team sees WTI turning down.

“Short positions below 74.00 with targets at 73.20 & 72.90 in extension. Above 74.00 look for further upside with 74.40 & 74.80 as targets.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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