WTI capped below $ 70 amid lower Asian imports and USD rebound

• WTI returns part of the previous week’s earnings on Monday.
• Oil recedes amid lower crude oil imports from Asia
• The rally in the US dollar is weighing on crude oil prices.

The crude oil retreats from highs and it moves with a negative bias during the European session on Monday. WTI renewed multi-year highs the previous week after OPEC + decided to cut supply in May. At the time of writing, the WTI it is trading at $ 69.08, losing 0.25% on the day.

According to Reuters, the world’s most important oil-importing region, Asia, is showing some signs of physical demand weaker with lower cargo arrivals in May. The main reason remains the resurgence of covid-19 in most South Asian countries, which weighs on the demand for fuel on the continent.

India, the world’s third-largest importer of crude oil, is struggling with the new strain of coronavirus dubbed “delta” by the WHO. The strain is considered highly transmissible and with serious health problems. The lower demand in the country affects oil prices.

In the meantime, Malaysia and Japan they have already extended their blockade until the end of June. The latest addition is the extension of the level 3 constraint in Taiwan until June 28.

The rally of the US dollar DXY index, which has regained its strength on Monday, puts additional pressure on the prices of gold, denominated in dollars.

The week before, the Energy Information Administration (EIA) reported a decline in crude oil inventories of 5.1 million barrels for the week to May 28. The lower reading boosted oil prices.

Now, the attention of investors is on the result of the Talks this week between the United States and Iran on a nuclear deal expected to increase crude supplies. If that happens, then it could dampen sentiment around crude prices due to an increase in supply.

WTI technical levels