WTI stalls upside once again below $ 70
- Expectations of tightening supplies on US sanctions on Iran underpin oil prices.
- Optimistic remarks from IEA´s Birol and Brent´s upmove keep WTI buoyed-
WTI (oil futures on NYMEX) stalled its steady recovery-mode once again near $ 69.80, as the risk-on rally in the global stocks dulled the attractiveness of oil as an alternative higher-yielding asset.
The US oil tracked its European counterpart, Brent, higher and went to test the $ 7 mark amid increased expectations of tightening global supplies, as the US sanctions on Iran loom.
The US sanctions on Iran´s oil sector will come into effect from November, 4, as the US President Trump seeks to reduce Iranian oil exports to zero to force the country to renegotiate an agreement on its nuclear program.
More so, the black gold finds support from the comments from the IEA Chief Birol delivered earlier today. Birol said that he sees a potential for higher oil prices, given strong global demand growth.
Looking ahead, the focus remains on the US weekly fuel stocks data due to be published by on Tuesday and Wednesday for the next direction on the prices.
WTI Technical Levels
According to Swissquote Bank Research Team, “Long positions above 68.55 with targets at 69.75 & 70.35 in extension. Below 68.55 look for further downside with 68.20 & 67.80 as targets. The RSI is mixed to bullish.”
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.
