After a modest rebound on Tuesday, the WTI (Nymex futures) turns negative as bears test the $ 73.00 level.
The renewed weakness in US oil comes after Reuters released details of a confidential report, citing that an OPEC + panel, the Joint Technical Committee (JTC), has warned of “significant uncertainties” and the risk of a possible imbalance in the world oil market after April 2022.
Key comments
In a baseline scenario, OECD oil stocks would be 96 million barrels and 125 million barrels below the 2015-2019 average for the third and fourth quarters of 2021, respectively.
In 2022, a significant increase is observed, leading to a jump of 181 million barrels by the end of the year.
The black gold has turned down again while faces rejection just above $ 73.50, despite the reduction in crude reserves in the United States, according to the latest report from the American Petroleum Institute (API) published late on Tuesday. The API report showed that US crude inventories fell by 8.15 million barrels last week.
The Risks induced by the Delta variant of derailing the global economic recovery and concerns about growing fuel demand they also weigh on sentiment around WTI. Markets are now awaiting the Energy Information Administration (EIA) weekly crude stock report and risk trends for new trading opportunities in oil.
WTI technical levels
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