WTI holds $ 66 mark amid Syria strikes and US rigs data

  • Cautious tone persists after the Western strikes on Syria and amid bearish US drilling report.
  • Will a weaker DXY help cushion the downside in oil prices?

WTI (oil futures on NYMEX) is seen attempting a tepid recovery from just ahead of the $ 66 threshold, after having run into strong offers near $ 66.85 on the European open, as broad-based US dollar weakness offers some respite to the bulls.

The weakness around the higher-yielding black gold is mainly driven by the risk-averse markets conditions, resulted from the weekend’s US-led coordinated strikes on Syria’s three chemical weapons facilities in Syria, as the West retaliated for a suspected poison gas attack in Douma on April, 7th.

Moreover, Friday’s bearish US rigs count data published by energy services firm Baker Hughes, also exacerbated the pain in the barrel of WTI. The US energy companies added seven oil rigs drilling for new production in the week to April 13, bringing the total to 815, the highest since March 2015, Reuters reports.

Looking ahead, rising geopolitical tensions between the Middle East and the US will continue to drive the oil-price trends. Meanwhile, the US weekly crude supplies data and USD dynamics could also have a major bearing on the prices.

WTI Technicals

At $ 66.40, the next resistances are aligned at $ 66.86/96 (stiff resistances/ 5-DMA), $ 67.29 (daily pivot) and $ 67.55 (classic R1/ Fib R1). 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.