WTI regains $ 63 amid supply risks, eyes on US rigs data, OPEC + meeting
- Oil supported by supply threats on Middle-East woes, US sanctions on Iran.
- Focus on US rigs count data, risk sentiment and OPEC + meet for the next direction.
WTI (futures on Comex) stretches its bullish momentum into a fourth day today, now flirting with two-week tops of 63.48, as the sentiment remains underpinned by mounting supply disruption threats fuelled by rising tensions in the Middle East this week.
Moreover, the US sanctions on Iran continue to curb the Iranian crude exports, adding to the tighter global supplies as well as to the upside in the black gold. Furthermore, the ongoing OPEC supply cuts also raise the risks of a supply deficit in the coming months, rendering oil positive.
The concerns over supply disruption continue to overshadow the recent surge in the US crude stockpiles and the US-China trade escalation induced risk-aversion.
Later today, all eyes will remain on the US rigs count data for fresh hints on the US supply-side scenario. The focus also remains on the OPEC + meeting scheduled over this meeting in Jeddah for the next direction in oil prices.
The OPEC + meeting is called on to assess member states’ commitment to the OPEC oil output cut deal and may make a recommendation on whether to extend or adjust the pact.
WTI Technical Levels
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
