Oil drops on report White House to ask OPEC to pump more

Brent  Oil was trading 1.02% Down at  $69.88.

Oil fell below $70 a barrel on Wednesday, pressured by a CNBC report that the White House will call on OPEC and its allies to boost production in an effort to combat climbing gasoline prices.

The price of Brent Crude is up 35% this year supported by OPEC-led supply curbs, even after oil last week suffered the steepest weekly loss in months on worries that travel restrictions to curb coronavirus infections will hit demand.

Brent crude was down 86 cents, or 1.2%, to $69.77 a barrel at 1030 GMT, following a 2.3% rally on Tuesday. U.S. West Texas Intermediate (WTI) dropped 80 cents, or 1.2%, to $67.49, after a 2.7% jump on Tuesday.

Before the CNBC report, crude was trading above $70 as signs of rising fuel demand in the United States offset concerns about travel curbs in Asia caused by the spread of the COVID-19 Delta variant.

Industry data showed U.S Crude and gasoline inventories fell last week, while the U.S. Energy Information Administration (EIA) said U.S. job growth and increasing mobility had boosted gasoline consumption so far this year. [API/S] [EIA/M]

“The EIA’s upbeat demand forecasts for this year helped alleviate fears of a deteriorating near-term outlook,” said Stephen Brennock of oil broker PVM.

On the technical front Brent Oil , RSI Stood at 41.077, the current price is trading  Below All  the Moving Averages  . So, a  Sell trade can be executed with the following target and stop-loss:

TRADE SIGNAL-Brent Oil– SELL: 69.90, TARGET:-59.90, STOP LOSS:- 74.90.

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