- Bearish EIA crude inventories data and rising Russian output drag oil lower.
- Looking for a test of $ 67 amid renewed US-Sino trade tensions.
WTI (oil futures on NYMEX) failed once again above the $ 68 handle and returned to the red zone, now making headways towards the eleven-day lows of $ 67.33 reached a day before.
WTI: Focus on EIA crude stockpiles data
The unexpected build in the US crude stockpiles, as published by the Energy Information Administration (EIA) on Wednesday, keeps the sentiment around the barrel of WTI undermined. The EIA showed that the US crude inventories rose 3.8 million barrels last week against an expected 2.8 billion barrels decline.
Moreover, a broadly firmer US dollar and intensifying US-China trade dispute also weighs negatively on the higher-yielding oil. Meanwhile, the latest leg down in the black gold can be attributed to latest Russian Energy Ministry data published last hour that showed that Russian oil output rose by 150,000 barrels per day (bpd) in July from a month earlier.
Looking ahead, the prices will continue to get influenced by the USD dynamics and broader market sentiment until Friday’s US rigs count data.
WTI Technical Levels
According to FXStreet’s Analyst at Joshua Gibson, “With WTI crude barrels falling back beneath 68.00, buyers will be looking to halt any further declines into the last swing low at the 67.00 level in hopes of propping prices back over last week's high of 70.40 with eyes on the year's current highs of 75.35, while bears will be looking to drive the action further down into mid-June's lows at 63.50.”
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