WTI comes under pressure near $62.30

WTI loses momentum and recedes to the $62.30 area.
US-Iran conflict raises doubts regarding oil supply.
API weekly report on crude inventories next on tap.

Pablo Piovano FXStreet

Prices of the barrel of the West Texas Intermediate are correcting lower on Tuesday following Monday’s multi-month tops just below the $65.00 mark.

WTI looks to the Middle East, data

The barrel of WTI is trading on the defensive for the first time after three consecutive daily advances, including Monday’s fresh tops in the vicinity of the $65.00 mark, levels last seen in April 2019.

The rejection from recent peaks comes after US-Iran tensions ebbed somewhat in past hours, while at the same time traders continue to re-assess the potential for supply disruptions, all adding to the renewed cautious tone surrounding the black gold.

Also weighing on crude prices, trade concerns appear to have re-emerged after Chinese news agency said the country would be in no hurry to sign the ‘Phase One’ deal (originally scheduled on January 15^th).

Later in the day, the API will publish its report on US crude oil supplies ahead of the EIA’s report expected on Wednesday.

WTI significant levels

At the moment the barrel of WTI is losing 0.84% at $62.74 and a break below $60.81 (21-day SMA) would open the door to $60.63 (low Dec.31 2019) and then $60.02 (low Dec.20 2019). On the upside, the next hurdle aligns at $64.72 (2020 high Jan.6) seconded by $66.60 (2019 high Apr.23) and finally $67.95 (high Oct.29).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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