WTI finds support near $63, stages decisive rebound
- Iran's crude oil exports said to be below 1 million bpd so far in April.
- Employees decide to extend strike at Shell's Pernis refinery.
- Coming up: API's weekly crude oil stock report.
After testing the $63 mark earlier in the day, the barrel of West Texas Intermediate reversed its direction and turned flat on the day above mid-$63s as latest headlines suggested potential crude oil supply disruptions.
According to Refinitiv Eikon's data, Iran's crude oil exports dropped below 1 million barrels per day so far in April from 1.1 million bpd in March to remind investors of the impact of the U.S. sanctions on the crude oil supply. Additionally, a spokesman for the responsible trade union today said that employees working at the Shell's Pernis Refinery decided to extend their strike.
In addition to these headlines, the upbeat market sentiment in the second half of the day as reflected by rising U.S. T-bond yields and stock markets provided an additional boost to commodities. Later in the session, the weekly API crude oil inventory data from the U.S. will be looked upon for fresh impetus.
On other oil-related news, the Nigerian oil minister earlier in the day told reporters that Nigeria was planning to increase its oil production by 75K barrels per day starting June.
Technical levels
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
