WTI recovery stalls near $ 67.85 ahead of EIA data

• Bullish bias still intact amid looming Iran concerns, higher OPEC deal compliance.
• Nervousness sets in, as the focus shifts to EIA crude inventory data, FOMC.

WTI (oil futures on NYMEX) is seen paring back gains in the European session, as the bulls face exhaustion following the relief rally from $ 66.85 levels.

The barrel of WTI stalled its recovery mode, as the greenback regains ground against its major peers heading towards the US ADP jobs data and FOMC decision. Moreover, the upside remains capped, in response to the bearish API report released yesterday, which showed that the US crude stockpiles rose by 3.4 million barrels to 432.575 million in the week to March 27.

However, the black gold manages to find support from looming Iran concerns, with prospects of supply disruption should the US reimpose sanctions against Iran. The US President Trump will decide by May 12 whether to restore the US sanctions on Tehran.

Oil traders now look forward to the official US government numbers on the crude inventories, as published by the EIA, due later today for fresh trading impetus. Also, in focus will be the FOMC verdict for further momentum on the USD-sensitive commodity.

WTI Technical Levels

According to Peter A Rosenstreich, Head of Market Strategy, Swissquote Bank SA, “Crude oil is bouncing off from 66.85, currently trading along 67.75 and approaching the 67.85 range. Crude Oil is trading at December 2014 high. The bullish pattern started in mid-February 2017 is maintained. Hourly support and resistance are given at 65.56 (17/04/2018 low) and 69.54 (12/01/2014 high). The technical structure suggests short-term upward moves.”