TRENDING:

XAU/USD

EUR/USD

WTI slumps to fresh 2-month lows below $66

Saudi oil minister hints at possible higher oil output.
Iranian oil minister says sanctions won't stop them from exporting oil.
Sell-off witnessed in stock markets continue to weigh on commodities.

Eren Sengezer FXStreet

After closing the previous day with modest losses, crude oil prices came under a heavy selling pressure on Tuesday and the barrel of West Texas Intermediate weakened to its lowest level in two months at $65.70. As of writing, the barrel of WTI was trading at $66.50, losing $3, or 4.3%, on a daily basis.

Earlier today, Saudi Arabia’s Energy Minister Khalid Al-Falih said that it was possible for their output to increase by 1-2 million barrels per day and added that they were ready to meet the market demand if Iran's oil exports were to shrink due to the U.S. sanctions. On the same note, Iran's Oil Minister Bijan Zanganeh told Tasnim news today that exports couldn't be stopped by the sanctions and argued that oil markets would stay volatile amid the U.S. actions.

Additionally, another deep sell-off witnessed in global equity indexes revived the concerns over a weak demand outlook and weighed further on crude oil prices. Commenting on oil's price action, "Concerns about what's going on in the stock markets and the worries about economic growth has spilled over into the oil markets. Investors will be watching closely to see if the increase in Saudi Arabia's output materializes quickly," Gene McGillian, vice president of market research for Tradition Energy in Stamford, Connecticut, told Reuters.

Technical levels to consider

The WTI could face the first technical support at $65.70 (daily low) ahead of $64.50 (Aug. 15 low) and $63.60 (Jun. 18 low). On the upside, resistances align at $68 (Aug. 22 high) and $69.30 (Aug. 24 high) and $70 (psychological level/50-DMA).

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.

GBP/USD bounces off lows, back above 1.3200

After bottoming out near 1.3160, GBP/USD manages to regain a bit of shine and reclaim the 1.3200 mark and beyond at the end of the week. Stronger-than-expected UK Retail Sales data seem to be helping the British Pound limit its losses, while the chaotic UK political environment keeps the bulls at bay for now.

EUR/USD looks consolidative around 1.1460

EUR/USD stages a modest rebound after slipping to a three-month low below 1.1420 at the end of the week. That said, the pair now looks to consolidate humble gains just above 1.1460 despite growing uncertainty surrounding the next round of US-Iran negotiations, which keeps the US Dollar’s downside contained.

Gold slips back to six-day lows, targets $4,100

Gold retreats for the third consecutive day on Friday, eroding gains seen in the first half of the week and approaching the key $4,100 mark per troy ounce. Indeed, the precious metal continues to face headwinds from the Fed's hawkish stance and renewed uncertainty surrounding the next round of US-Iran negotiations.

Breaking: Iran closes the Strait of Hormuz amid ceasefire deal violation

Iran says it is closing the Strait of Hormuz after accusing the United States (US) and Israel of violating the ceasefire. According to Iran, the decision came over the continued Israeli strikes in Lebanon. The Iranian Revolutionary Guard Corps Navy issued a warning to all vessels: "Do not approach the Strait of Hormuz; otherwise, your security will be jeopardized."

The Iran war didn't break the US economy, but what happens next?

Nearly four months after the start of the Iran war, the US economy remains remarkably resilient. While the conflict initially triggered a severe disruption to global energy markets and a sharp rise in Oil prices, recent diplomatic progress between Washington and Tehran has eased concerns about a prolonged supply shock.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.

WTI slumps to fresh 2-month lows below $66

Broker Reviews

Editor's Picks