WTI crude oil bounces back towards $69.50 handle, as the US dollar extended the retreat versus its main competitors in anticipation of the US tariffs announcement on the Chinese imports. What to expect next?
17 September, OctaFX – South Korea’s crude oil imports from Iran plunged 86.5% in August from a year earlier due to pending re-imposition of US sanctions on Tehran, according to preliminary data released by the Korea Customs Service Monday.
The country imported 232,723 mt (1.71 million barrels or 55,161 b/d) of Iranian crude, including condensate, in August, down 86.5% from 12.63 million barrels in the same month last year.
WTI Crude Oil Bounces Back Towards $69.50
WTI (oil futures on NYMEX) caught a fresh bid-wave in the European session and regained the 69 handle, as the US dollar extended the retreat versus its main competitors in anticipation of the US tariffs announcement on the Chinese imports.
The black gold also remains underpinned by supply risks emerging from Iran, as the focus shifts to the US sanctions on Iran that take effect in November, mainly targeting the nation’s oil sector. Iran is the OPEC’s No.3 oil producer.
In the latest client note, Analysts at Bank of America Merrill Lynch (BAML) said,
““Iranian crude oil export loadings have declined by 580,000 barrels per day in the past three months.”
However, the recovery gains are likely to be limited, as markets remain unnerved ahead of the US tariffs announcement on $ 200 billion worth of Chinese imports, which could trigger a renewed risk-aversion wave across the financial markets.
WTI Technical Levels
Resistances: $ 69.50 (psychological level), $ 69.91 (Sept 14 high), $ 70 (key resistance).
Supports: $ 68.69 (10-DMA), $ 68.36 (Sept 13 low), $ 68.00 (round number).
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