- Concerns over Middle East supply disruptions fade.
- Expectations of rising US crude production and stockpiles weigh.
WTI (oil futures on NYMEX) took a sharp U-turn from just ahead of the 66 handle and reverted towards the familiar range near 66.30 levels, as the bulls try hard to take on the recovery back above the $ 66.50 barrier.
The black gold ran into fresh offers after the US dollar caught a fresh bid-wave across its main competitors while expectations of a surge in the US shale oil output levels combined with nervousness ahead of the US weekly crude supplies report also weighed negatively on the prices.
However, the bulls quickly regained footing amid potential supply disruption concerns should the US renew the sanctions against Iran. Meanwhile, the political and economic crisis in Venezuela could also keep a check on the country’s oil output levels.
Focus now shifts towards the American Petroleum Institute (API) weekly US crude inventory data due later in the American afternoon for fresh direction on oil prices. In the meantime, markets digest the latest remarks from the International Energy Agency (IEA) Executive Director Faith Birol on the oil markets.
At $ 66.25, the next resistances are aligned at $ 66.84 (5-DMA), $ 67.40 (classic R1/ Fib R1) and $ 68 (round number). To the downside, supports are located at $ 66 (Apr 12 low), $ 65.15 (10-DMA/ Apr 11 low) and 64.50 (psychological levels).
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.