WTI Crude is currently trading at $68.99-lower by 0.50% from the last closing. Crude Oil fell on Wednesday as a U.S. Gulf tropical storm weakened and moved away from oil-producing areas and concern about weakening global demand added downward pressure.

Crude had jumped the previous day as oil companies shut dozens of offshore platforms in anticipation of damage from tropical storm Gordon. But by Wednesday the storm was weakening, reducing its threat to oil producers.

Brent crude, the global benchmark, fell 58 cents to $77.31 a barrel at the time of writing. On Tuesday prices had climbed to $79.72, their highest since May.

Oil also weakened as the slide in Turkish Lira and the US-China trade dispute raised demand worries. OPEC Secretary-General Mohammad Barkindo said he expects trade disputes to hit energy demand eventually.

Oil could draw some support if weekly reports on U.S. inventories show a drop in crude inventories, as expected. Analysts estimate, on average, that stocks fell by about 1.9 million barrels last week. US inventories fell by 2.56 million barrels in the previous week according to official figures.

The API will release its supply report at 2030 GMT on Wednesday, a day later than usual because of the Labor Day holiday on Monday. Official government figures are due on Thursday.

U.S. sanctions targeting Iran’s oil sector from 4th November are already reducing exports from OPEC’s third-largest producer and counteracting the impact of an agreement by OPEC and its allies to pump more oil.

Saudi Aramco stated on Wednesday that it has raised the European price for its Arab Light crude grade for October, as Russian Urals prices rally and European refiners seek to replace Iranian oil supplies ahead of the November U.S. sanctions deadline.

According to market sources, with the anticipation of up to 1.5M barrels per day affected by the U.S. sanctions on Iran, it is expected that prices may move higher in the weeks ahead.

On the technical front, the RSI is currently at 53.4% and suggests that the market can move in the downward direction. The %K has crossed the % D from above to the downside at 93.27%, and this suggests that the market may head downwards. The current price is below the MA5.So, overall the market setup seems to be negative.


Trade Suggestion-Limit Sell At 69.00, Take Profit At 68.00 Stop Loss At 69.50

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