WTI turns south again ahead of Saudi presser, EIA data
- WTI resumes decline amid Saudi’s pledge to restore supplies and risk-off.
- Markets await Saudi Defence Ministry's presser and US EIA Crude stocks.
WTI (futures on Nymex) stalled its tepid recovery above the 59 handle and slipped below the last once again in the European trading, as bears fought back control amid easing fears over Saudi’s output disruption and pre-Fed caution trading.
Mid-East frictions and Saudi supply-side scenario in focus
The black gold came under fresh selling pressure after a renewed risk-aversion wave gripped the European markets amid pre-Fed decision nervousness. Moreover, the ongoing broad-based US dollar rebound also seems to collaborate to the latest leg down in oil prices. The USD index climbs +0.20% to 98.50, reversing from 98.20 lows. A stronger greenback makes the USD-denominated oil more expensive to the holders in foreign currencies.
Further, the bearish sentiment can be also attributed to the receding fears over Saudi Arabian output disruption, initially expected following the weekend’s attack on Saudi’s oil facilities. The Kingdom’s Energy Minister Prince Abdelaziz said on Tuesday that Aramco will restore oil supplies to customers by the month-end.
Looking ahead, the barrel of WTI remains exposed to downside risks, as tensions remain rife with between the US and Iran over the Saudi attack while the Saudi Defence Ministry present “material evidence and Iranian weapons proving the Iranian regime’s involvement in the terrorist attack” during the scheduled press conference later today at 1430 GMT.
The presser is likely to overshadow the US weekly Crude Stocks data that will be published by the Energy Information Administration (EIA) at the same time.
WTI Levels to watch