WTI extends the sell-off to $ 66 ahead of EIA data

WTI (oil futures on NYMEX) came under renewed selling pressure in the European session, as the bears regained poise amid negative sentiment on the European equities, with Turkey fears still weighing on the risk assets.

At the time of writing, the barrel of WTI is down -1.30% at $ 66.20, looking vulnerable below a break of the $ 66 support, as rising US crude stockpiles dent the sentiment. The American Petroleum Institute (API) showed late-Tuesday that US crude stocks rose by 3.7 million barrels in the week to Aug. 10, to 410.8 million barrels.

Moreover, looming concerns over slowing global economic growth amid escalating trade and geopolitical tensions continue to act as a drag on the prices.

Attention now turns towards the official US government crude stockpiles report due later today at 1430 GMT.

WTI Technical Levels

FXStreet’s Analyst, Joshua Gibson, noted: “Support is seen at recent swing lows of 66.30 and 65.70, and the last peak at 68.30, further resistance is seen at August's peak of 69.90, though the rising possibility of further crude buildup will see barrel prices continue to sink as reserve counts rise over time.”