WTI: Upside stalls near $ 56.50 ahead of API data

Buoyed by rising Gulf geopolitical tensions that threaten supply disruption.
Unabated US dollar strength, dwindling oil demand keep the upside in check.
All eyes on trade, geopolitics and US API crude stockpiles data for fresh direction.

Dhwani Mehta FXStreet

The latest uptick in WTI (futures on Nymex) faltered just ahead of the midpoint of the 56 handle, as a tug-of-war between the bulls and bears continue ahead of the American Petroleum Institute (API) weekly crude stock data release.

The sentiment around the black gold remains underpinned by rife Middle East tensions, in the face of last week’s seizure of the two British tankers by Iran in the Strait of Hormuz. Markets fear the escalating tensions in the Gulf would hamper the crude supplies, as the Hormuz Strait is one of the key trading channel.

Despite the renewed strength in the barrel of WTI, the sellers continue to lurk amid persistent broad-based US dollar demand and bleak global oil demand outlook (as reported by the International Energy Agency recently). Falling odds of aggressive July Fed rate cut combined with a deal reached by the US President Trump and Congress leaders on the US debt offer extra zest to the USD bulls. A stronger greenback makes the USD-sensitive oil expensive for the holders in foreign currencies.

The immediate focus now remains on the USD dynamics and geopolitical developments, as markets eagerly await the API crude report, due at 2030 GMT, for fresh direction on the prices.

Levels to watch

WTI

Overview
Today last price	56.20
Today Daily Change	0.10
Today Daily Change %	0.18
Today daily open	56.24

Trends
Daily SMA20	58.11
Daily SMA50	57.32
Daily SMA100	59.42
Daily SMA200	56.91

Levels
Previous Daily High	57.04
Previous Daily Low	55.82
Previous Weekly High	60.98
Previous Weekly Low	54.87
Previous Monthly High	59.93
Previous Monthly Low	50.72
Daily Fibonacci 38.2%	56.29
Daily Fibonacci 61.8%	56.57
Daily Pivot Point S1	55.69
Daily Pivot Point S2	55.15
Daily Pivot Point S3	54.47
Daily Pivot Point R1	56.91
Daily Pivot Point R2	57.59
Daily Pivot Point R3	58.13

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.

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