WTI: Bulls re-take $ 70 on steady Russian output

• Supply risks from Iran sanctions, steady Russian output outweigh trade war fears
• Upside looks capped, as technical indicators point to downside bias.

WTI (oil futures on NYMEX) once again found support near the $ 69.60 region, as the bulls to regain control, now pushing the prices to take-out the 70 level.

Mounting supply disruption concerns from additional US sanctions on Iran (OPEC’s no. 3 oil exporter) in November, targeting its oil sector, continue to buoy the sentiment around the black gold.

Also, the barrel of WTI cheered the reports showing that the Russian output steadied in August after the jump seen in July. Russia halts oil-output boost after July jump - Bloomberg

However, a broadly firmer US dollar amid fragile risk appetite, in the wake of global trade war fears and Emerging Markets (EM) woes, could cap the renewed uptick in oil prices. A stronger US dollar makes the USD-denominated oil more expensive for the foreign buyers.

Attention now turns towards the weekly US fuel stocks report due later this week for the next direction on the prices.

WTI Technical Levels

The Swissquote Bank Research Team, explains “Short positions below 70.00 with targets at 69.35 & 68.95 in extension. Above 70.00 looks for further upside with 70.50 & 70.95 as targets. The RSI is bearish and calls for further decline.”