WTI fades a spike above $ 69 ahead of US data

Finds support from looming supply threats, US dollar weakness.
In a wait and watch mode ahead of the US retail sales and drilling data.

Dhwani Mehta FXStreet

WTI (oil futures on NYMEX) resumed its side-trend below the $ 69 mark, having failed a couple of attempts to sustain above the last, as investors remain nervous ahead of the critical US retail sales and US rigs count data due on the cards later on Friday.

Despite yesterday’s 2.5% drop, the black gold managed to find support reversed some of its losses, as looming concerns over supply disruptions, in the wake of the US sanctions on Iran and Venezuelan economic crisis.

Analysts at Australia and New Zealand Banking Group (ANZ) noted: "Prices remain well supported as the market continues to fret about ongoing structural supply issues elsewhere."

More so, broad-based US dollar weakness following softer US inflation figures and fading US-China trade war risks also offer the much-needed respite to the USD-denominated oil. The barrel of WTI now awaits the US drilling sector activity report for the next direction on the prices.

WTI Technical Levels

Resistances: $ 69.15 (daily high), $ 69.50 (psychological level), $ 69.92 (daily R1).

Supports: $ 68.66 (20-DMA), $ 68.36 (Sept 13 low), $ 68.00 (round number).

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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