WTI jumps 1% to $ 68 mark ahead of API data

• Saudi Arabian output cut and Iran sanctions remain Oil-supportive.
• Struggles to extend the bounce beyond $ 68 as slowing global growth outlook weighs.

WTI (oil futures on NYMEX) consolidated its V-shaped recovery in the Asian trades this Tuesday and broke further to the upside in Europe, having tested the $ 68 threshold.

The renewed upside in the black gold can be mainly attributed to the reports that Saudi Arabia, world’s biggest oil producer, slashed oil production by 200,000 barrels per day (bpd) to 10.288 million bpd in order to avert a looming oversupply seen in 2019.

More so, expectations that the US sanctions on Iran will curb the Iranian oil exports and tighten the global supplies also collaborated to the upbeat tone around the commodity. Additionally, with easing tensions between the US and Turkey combined with a rebound in Lira, the risk appetite rebounded, lifting the demand for the higher-yielding barrel of WTI.

However, the bulls still remain cautious amid looming concerns over slowing global economic growth, as trade war tensions and downbeat Chinese macro data dim the outlook. Also, market remains wary ahead of the US weekly crude stockpiles data due to be published by the American Petroleum Institute (API) later on Tuesday at 2030 GMT.

WTI Technical Levels

Higher side levels: $ 68.52/53 (Aug 1 high/ 20-DMA), $ 69.14 (50-DMA), $ 69.50 (psychological levels).

Lower side levels: $ 67.51 (5-DMA), $ 66.99 (daily pivot), $ 66.18/15 (daily S1, Fib S1).