WTI wobbles around $70.00 within a tight range

  • Prices of the WTI alternate gains with losses around the $70.00 mark/bbl.
  • Support emerges around weekly lows in the $69.30 region.
  • US oil rig count by Baker Hughes next of importance in the calendar.

Prices of the barrel of the West Texas Intermediate are attempting a sideline theme in the area of weekly lows around the key $70.00 handle.

WTI now looks to data

Prices of the barrel of the American reference for the sweet light crude oil ae looking for traction in the lower bound of the weekly range following Wednesday’s sharp pullback and Thursday’s multi-day lows in the $69.30 region.

WTI dropped markedly on Wednesday despite the EIA reported a more than 12 mbpd draw in US crude oil supplies, the largest decrease since 2016. In fact, news that Libya could resume its exports of oil impacted on traders’ sentiment and forced prices to recede more than $4 and break below the psychological $70.00 mark.

In the same line, the prevailing effervescence around the US-China trade spat continues to weigh on the market and keeps capping any bullish attempt in prices.

However, WTI found some respite after the latest monthly report from the IEA said crude oil supply could be threatened in light of the stretched spare capacity following OPEC+ plans to increment the output.

Later in the day, driller Baker Hughes will publish its weekly report on US oil rig count.

WTI significant levels

 

At the moment the barrel of WTI is up 0.04% at $70.45 facing the next hurdle at $72.97 (10-day sma) followed by $75.34 (2018 high Jul.4) and then $77.95 (high Nov.21 2014). On the downside, a break below $69.30 (low Jul.12) would target $67.86 (low Jun.27) and finally $67.16 (100-day sma).

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