WTI crude oil price stabilized near $76.50 as bearish EIA report, a stronger dollar and Saudi news drive the retreat in the prices overnight. Should traders expect further upside risks amid looming US sanctions on Iran?
4 October, Swissquote – WTI (oil futures on NYMEX) is seen extending the side trend into the European session, having retreated from four-year peaks of $ 76.89 in the US last session, in response to bearish US crude stocks data and on news that Russia and Saudi Arabia struck a private deal in September to raise crude output.
Bearish EIA report
Wednesday’s crude oil inventories data published by the Energy Information Administration (EIA) showed that the US crude oil stockpiles rose by nearly 8 million barrels last week to about 404 million barrels, the biggest increase since March 2017 while the US crude oil production remained at a record high of 11.1 million barrels per day (bpd).
Further, a fresh rally triggered in the US dollar across its main competitors also capped the upsurge in the prices. A stronger US dollar makes the USD-denominated oil more expensive for the holders in foreign currencies.
WTI Crude Oil Price Stabilizes Near $76.50
However, from a broader perspective, the barrel of WTI will remain underpinned and risks conquering the 77 handle amid rising expectations of a potential global supply threat after the US sanctions on Iran’s oil sector come into force from Nov, 4th.
The focus now shifts towards the US rigs count and payrolls data for the next direction in oil. In the meantime, oil prices could track the USD dynamics and broader market sentiment for some trading impetus.
WTI Technical Levels
According to Swissquote Bank Research Team,
“Long positions above 75.60 with targets at 76.90 & 77.30 in extension. Below 75.60 look for further downside with 74.90 & 74.25 as targets. The RSI calls for a new upleg.”
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