WTI corrects further below $ 62, eyes on Saudi presser, API

WTI (futures on Nymex) keeps its corrective mode intact below the 62 handle in the European trading, shedding some of Monday’s massive gains induced by the Houthi drone attacks on Saudi Arabian oil and gas facilities.

Mid-East tensions to remain the main market driver

The weakness in oil prices can be mainly attributed to increased anxiety among the investors, as they assess the effects of the Saudi attack and its implications on the oil market in the coming months.

Moreover, the market mood remains cautious amid lingering fears over a military response to attacks while the US’ likelihood of releasing its crude reserves also collaborates to the downbeat tone around the black gold.

The US Energy Secretary Perry said: “We are adopting a wait and see approach to using the strategic petroleum reserve (SPR).” This comes as the Saudi attack disrupted half of the kingdom's oil capacity or 5% of the daily global oil supply. 

Attention now turns towards the all-important Saudi Oil Minister’s press conference to gauge the next direction in oil prices. The presser could shed light on

Saudi’s supply-side scenario and could also hint at Saudi’s response to the attack. The barrel of WTI is set for another ride on the presser.

Also, the US American Petroleum Institute (API) weekly Crude Stocks data will be eyed for fresh trading incentives. However, the Mid-East developments will likely overshadow and emerge the main market driver.

WTI Levels to watch