WTI reverses a dip to $ 67.25, Iran concerns underpin
- Resurgent USD strength, bearish rigs count knock-off oil prices.
- Supply disruption concerns over US-Iran row lend support.
The steady decline in WTI (oil futures on NYMEX) picked-up pace in the European session, mainly driven by a fresh round of aggressive buying seen around the US dollar versus its six main peers, as Treasury yields turned positive across the curve ahead of the US Core PCE inflation numbers.
Moreover, the barrel of WTI continues to remain undermined by rising US rigs count after the latest data from Baker Hughes energy services firm showed that the US drillers added five oil rigs in the week to April 27, bringing the total count to 825, the highest level since March 2015.
However, the black gold managed to find buyers just ahead of the 20-DMA support at $ 67.10, now attempting a tepid bounce back above the $ 67.50 barrier. The downside remains capped, as supply disruption concerns amid prospects that the US could reimpose sanctions on Iran continue to lend the much-need support to the prices while falling output in Venezuela also helps keep the losses restricted.
Looking ahead, the focus remains on the weekly crude supplies data from the US and developments around the Iranian nuclear deal for fresh trading impetus.
WTI Technical Levels
According to FXStreet’s Analyst, Joshua Gibson, “Crude is still holding onto an overall bull trend, and bears will be looking to knock prices below the 50.0 Fibo level at 65.40 in order to challenge April's low at 61.80, while bulls will want to drive prices beyond the current ceiling at April's high of 69.50.”