WTI Crude Oil Price Drop Towards $75
WTI crude oil price has dropped and made a corrective slide towards the $75 handle, having run into fresh sellers near $ 75.90, which are the highest levels seen since November 2011. What is next?
2 October, GKFX – The latest leg down in the barrel of WTI, can be mainly attributed to the latest reports, citing that the Russian oil output hit a post-Soviet high at 11.36 million barrels per day (bpd) in September.
Crude Oil Fundamental Highlights
Moreover, increased safe-haven bids for the US dollar strength, intensifying Italian budget crisis and Brexit concerns, cap the upside in the USD-denominated oil. The USD index rises to 4-week top of 95.71 heading towards the FedChair Powell’s speech due late-Tuesday.
However, the prices will continue to derive support from a potential global supply disruption, likely to emerge due to the US sanctions on Iran’s oil sector that comes into force from Nov, 4th.
Meanwhile, Russia’s Deputy Energy Minister Sorokin disclosed earlier today, that Russia is unable to materially increase crude supplies to the Asian markets which are faced with the loss of Iranian imports due to existing transportation constraints.”
The broader market sentiment and risk trends seem to continue to influence the black gold until the release of the American Petroleum Institute (API) fuel stockpiles data due later in the day.
WTI Technical Levels
According to Slobodan Drvenica at Windsor Brokers,
“bulls are expected to enter consolidative/corrective phase before continuing, with overbought daily RSI/slow stochastic and weakening momentum, supporting the notion.
Former lower top at $74.67 (10 July) marks solid support, violation of which would allow for dip towards $74.20 (Fibo 38.2% of $71.47/$75.89 upleg) and $73.68 (50% retracement), where extended dips should find ground to keep bulls intact.
Corrective action is seen as positioning for further upside and test of next key barriers at $76.35 (Fibo 61.8% of $107.45/$26.04 fall) and $76.53 (Fibo 138.2% expansion of current wave C of five-wave sequence from $64.43, 16 Aug low).”
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