WTI fades a spike to $ 62.70 despite Middle East tensions, risk-on
- Oil boosted by rising supply concerns amid escalating Middle-East woes.
- Uncertainty over OPEC supply cuts extensions, swelling US crude stocks to cap gains?
WTI (futures on Comex) picked-up bids in the European session and clinched fresh three-day tops at 62.68 levels before receding slightly to now trade near 62.40 region.
Despite the latest retreat, the sentient around black gold remains buoyed amid mounting supply disruption concerns, as the Middle-East tensions intensify alongside heightening US-Iran rift. The supply risks continue to overshadow the rising fears over the US-China trade war and remain oil-supportive.
“An attack on four oil tankers in the Gulf on Sunday, for which no one has claimed responsibility, and Saudi Arabia’s announcement that armed drones hit two of its oil pumping stations, have compounded concerns have stoked supply-side fears”, as reported by Reuters.
However, markets remain wary over the swelling US crude inventories and OPEC’s plan of supply cut extension beyond June. This may limit further upside in the barrel of WTI.
Attention now turns towards the OPEC + meeting scheduled over this meeting in Jeddah for the next direction in oil prices. Meanwhile, the commodity will take cues from the broader market sentiment and supply-side scenario for near-term trading impetus.
WTI Technical Levels
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.
