- Bears looking for a test to the downside although fundamentals should support prices in the long run.
- WTI is currently trading at 64.00 bbls within the range of between 63.02 and 64.09.
Oil prices were on the offer yesterday following Russia’s finance minister reportedly questioning his country’s participation in a production-cut deal led by, although the supply was shortlived and prices have stabilised on Tuesday while fighting in Libya and falling Venezuelan and Iranian exports have raised concerns over tightening global supply. Meanwhile, traders await the weekly petroleum data, which, however, may reveal a fourth straight weekly rise in U.S. crude inventories be the next catalysts for a restest of the downside below a 61.8% Fibo retracement level.
U.S. crude inventories are expected to have risen by 1.9 million barrels last week, the fourth straight weekly increase. The first of this week's stockpile reports are due at 4:30 p.m. EDT (2030 GMT) from the American Petroleum Institute.
However, it seems that there are many supply threats that outweigh which has been supporting the bullish outlook, and with trade talks on the brink of firming a solution between Beijing's and Washington's trade spat, the market mood will likely be underpinned and that should support prices over the coming weeks. However, on a technical basis, a push below the 61.8% fibo could be all that is needed to sustain a correction lower in the meantime.
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