WTI hits 6-week lows near $ 68 amid risk-off, Saudi´s pledge

WTI (oil futures on NYMEX) is seen extending its declines in the European session, now down over a percent near fresh six-week lows reached just ahead of the 68 mark, as the bears remain in control amid reduced appetite for the risk assets such as the equities, oil etc.

The risk sentiment continues to sour in Europe, as the European stocks track the sell-off in its Asian peers, with the Italian budget woes, Brexit jitters and Saudi´s isolation dampening the inventors’ mood.

Moreover, Saudi Arabia’s pledge to fulfill any oil demand due to Iran export drop by playing a “responsible role” in energy markets, collaborated to the downside in the black gold. The US sanctions on Iran´s oil sector will come into effect from November, 4, as the US seeks to reduce Iranian oil exports to zero.

The bulls now remain expectant of a bullish API crude stockpiles report, with a drawdown in the crude inventories to offer some support to the barrel of WTI. The API crude data will be reported at 2030 GMT.

WTI Technical Levels

According to Swissquote Bank Research Team, “Short positions below 69.85 with targets at 68.90 & 68.52 in extension. Above 69.85 looks for further upside with 70.25 & 70.75 as targets. As Long as 69.85 is resistance, look for choppy price action with a bearish bias.”