- Crude oil makes a correction on Wednesday.
- The EIA report will be released on Thursday.
- US Dollar Index setadies in 94.30-40 band.
The barrel of West Texas Intermediate touched its highest level since November 2014 above $75 on Tuesday but made a deep correction to end the day flat near the $74 mark. After the weekly API data showed a bigger-than-expected draw in crude oil inventories in the U.S., the barrel of WTI started the day on a positive note and edged higher toward $75 mark before losing its traction.
Nonetheless, today's price action suggests a technical reaction to the latest rally rather than a drop driven by a fundamental development. Supply disruptions in Libya, Canada, and Venezuela and the Trump administration's pressure on international firms to stop importing oil from Iran are likely to continue to create upside pressure in crude oil prices.
Earlier today, Iran’s OPEC governor, Hossein Kazempour Ardebili, argued that U.S. President Trump's stance on oil bans would end up hurting the economy and consumer would pay the price.
"Trump’s demand that Iranian oil should not be bought, and (his) pressures on European firms at a time when Nigeria and Libya are in crisis, when Venezuela's oil exports have fallen due to U.S. sanctions, when Saudi’s domestic consumption has increased in summer, is nothing but a self harm," Ardebili said, as reported by Reuters.
The weekly stock report of the EIA, which is usually published on every Wednesday, will be released tomorrow due to the Independence Day holiday.
The initial resistance for the WTI aligns at $74.75 (daily high) ahead of $75.25 (Jul. 3 high) and $76 (psychological level). On the downside, supports could be seen at $73.50 (daily low), $73 (psychological level) and $72.50 (Jul. 2 low).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.