WTI hits fresh weekly lows as Saudi restores oil production capacity
- WTI extends losses amid bearish API reports and Saudi oil supplies back online.
- Next of note: Mid-East geopolitical, trade updates and EIA Crude Stocks data.
WTI (futures on Nymex) extends its seven-day long losing streak on Wednesday, with the sentiment undermined by swelling US crude inventories and easing Saudi oil supplies concerns.
WTI on its way to close Sept 16’s bullish opening gap?
The barrel of WTI keeps its bearish momentum intact and looks to close in the massive bullish opening seen on September 16th, in light of the Houthi attack on Saudi Arabian oil facilities. The prices came under fresh selling pressure last hour and printed fresh weekly lows sub-56.50 after Reuters reported sources, as saying that the Saudi oil production capacity is restored.
Moreover, easing US-Iran geopolitical tensions also adds to the oil-price weakness, especially after the Iranian government spokesman said that Iran is willing to give reassurances, accept small changes to nuclear accord if US returns to deal.
Meanwhile, the rising US crude stockpiles continue to weigh negatively on the black gold. The American Petroleum Institute (API) reported late Tuesday that the US crude supplies rose by 1.4 million barrels for the week ended Sept. 20th.
Looking ahead, the risks remain skewed to the downside in oil prices amid a risk-off market profile and ahead of the US weekly Crude Stocks data due to be published by the Energy Information Administration (EIA) later today at 1430 GMT.
WTI Levels to watch