WTI: Buyers remain in charge amid geopolitical jitters, API data in focus
- Geopolitical tensions concerning the OPEC members outweigh the increase in the US rig counts.
- Weekly API crude oil stocks will be observed for fresh impulse.
WTI is trading near a shade lower than $65.00 during the early Asian session on Tuesday. The energy benchmark previously stretched its north-run to a fresh five-month high amid geopolitical tensions at Libya and Iran. The API weekly inventory report will be up next in the oil traders’ radar.
In spite of witnessing the biggest increase in the US oil rigs count in last since May, as conveyed by the Baker Hughes weekly data, crude oil prices kept being bulls favorite on Monday as investors focused more on geopolitical rift at Libya and Iran.
Libyan National Army loyal to General Khalifa Haftar was aggressive in its march to acquire the capital Tripoli in a bid to seize power. The troop was asked to stop by the US Secretary of State Mike Pompeo.
On the other hand, the US President Donald Trump declared Iran's revolutionary guard as a terrorist organization and is aiming further damages to the OPEC member after it couldn’t please the US on nuclear terms during 2018.
With the geopolitical problems concerning some of the influential members of the Organization of the Petroleum Exporting Countries (OPEC), energy prices escalated their previous advances.
It should also be noted that news reports signaling that the US and China are closer to the much-awaited trade deal also positively affected WTI.
Weekly reading of the crude oil stock by the American Petroleum Institute (API) becomes an immediate concern for oil traders. The industry data registered 2.963 million barrels of addition into the oil stockpiles during the week ended on March 29. The figures are considered as an early signal for Wednesday’s official EIA crude oil stocks.
WTI Technical Analysis
August 2018 lows near $65.00 can offer immediate resistance to WTI, a break of which can propel prices further towards $65.30 and $66.10 whereas October 2018 high around $68.00 could lure buyers afterward.
On the downside, 200-day simple moving average (SMA) near $61.50 could be considered as immediate support should sellers spot 14-day relative strength index (RSI) in the overbought area. Additionally, the quote’s further declines under $61.50 may avail $60.80 and $60.00 as intermediate halts ahead of pleasing bears with $58.00.