WTI rebounds from $68.20 ahead of API data

• WTI fails to hold to gains but remains above $68.00 and near weekly highs. 
• Key event ahead: API weekly crude oil stockpiles.

WTI (oil futures on NYMEX) head lower on Tuesday, falling 0.40%. During the US session bottomed at $68.20 a barrel and then rebounded to $68.65, trimming daily losses. Overall, the barrel continues to hover around 2-week highs, more than 6% above August low. 

Crude started the day with a positive tone, supported by supply disruption worries, as the OPEC cut back output, while Venezuelan exports have continued decreasing. But a stronger US dollar and a decline in base metals, pushed oil to the downside. At 20:30 GMT, the API weekly crude oil stockpiles report will be released. 

WTI Technical outlook 

“The daily chart shows that the US benchmark is now pressuring its 100 DMA, while technical indicators eased within positive readings, now approaching their mid-lines. In the shorter term, and according to the 4 hours chart, WTI turned bearish, as its now breaking below its 20 SMA, for the first time in a week, while technical indicators gain downward traction, the Momentum already in negative territory and the RSI now at 55”, says Valeria Bednarik, Chief Analyst at FXStreet.

According to her, the barrel needs to break below the $68.00 figure to gain further downward traction. Below that level supports are seen at $67.25 and $66.60.