After recording heavy losses on Monday, crude oil prices went into a consolidation phase on Tuesday with the barrel of West Texas Intermediate fluctuating in a relatively tight range near the $67 mark. What next should traders expect? A technical picture of this is painted in the following 17 July WTI Crude Oil Price Technical Forecast.
17 July, GKFX – As of writing, the barrel of WTI was trading at $66.75, losing 30 cents, or 0.5%, on the day.
The shift in the sentiment surrounding crude oil prices seems to be caused by the easing concerns over supply disruptions. With its eastern fields re-opening, Libya’s output is estimated to increase by 650,000 – 700,000 per day.
“Fears of shortages, which pushed prices as high as $80 per barrel in early summer, are receding and concerns about looming surpluses growing,”
Carsten Menke, commodity research analyst at Swiss private bank Julius Baer, told Reuters on Tuesday.
Weekly API crude oil stock report is next in line
Furthermore, a report released by the Energy Information Administration yesterday revealed that the production in the U.S. was expected to rise by 143,000 barrels per day in August to reach a record high of 7.47 million barrels.
Later in the session, the API is going to publish its weekly crude oil stock report and a higher-than-expected increase in U.S. stocks could help the WTI retrace some of its recent losses.
17 July WTI Crude Oil Price Technical Forecast
The initial support for the barrel of WTI aligns at $66.40 (daily low), ahead of $65.70 (Jun. 22 low) and $65 (psychological level). On the upside, short-term resistances could be seen at $67.50 (daily high), $68.70 (May 30 high) and $70 (psychological level).
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