WTI (oil futures on NYMEX) extends yesterday’s slide and hit fresh six-day lows just below the $ 68 handle, as the bears tighten their grip amid mounting worries over global crude supplies. What next should traders expect? This will be discussed in today’s 1 August WTI Crude Oil Technical Forecast.
1 August, GKFX – The barrel of WTI remains under heavy selling pressure amid gloomy fundamentals, as the oversupply concerns returned to markets, with the unexpected build in the US weekly stockpiles and higher OPEC production levels.
WTI: Focus on EIA crude stockpiles data
According to the latest American Petroleum Institute (API) data, the US crude inventories rose by 5.6 million barrels last week against an expected decrease of 2.8 million.
Meanwhile, the latest reports showed that the OPEC production rose, led by Saudi Arabia, reached a 2018 high in July.
Further, broad-based US dollar strength amid escalating US-China trade dispute also collaborate to the downbeat tone around the black gold.
Markets look forward to the official US government numbers on the crude supplies, which will be published by the Energy Information Administration (EIA) later today at 1430 GMT.
1 August WTI Crude Oil Technical Forecast
According to Denis Joeli Fatiaki, Chief Market Analyst at Leo Prime,
“Crude WTI failed to maintain above 69.20 as indicated in yesterday’s update and fell below the price channel but managed to rebound at its 500 EMA and 67.72 support as indicated on the four hours price chart.
Crude WTIUSD will need to maintain activities above this level to head back up into the price channel. If it fails to hold above the current support at 67.72 then it could trigger a selloff to around 66.93 – 66.24.”
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