WTI bounces-back above $ 68 mark as USD selling extends

• Looks to take on the recovery above $ 68, will it sustain?
• Iran concerns offset the swelling US crude stockpiles and rising output.  

WTI (oil futures on NYMEX) is seen making another recovery attempt above the $ 68 mark, helped by a fresh round selling seen in the US dollar against its main competitors, as the post-FOMC corrective slide in the greenback extends.

Meanwhile, the prospects of supply disruption should the US reimpose sanctions against Iran, also continue to underpin the sentiment around the black.

However, it remains to be seen if the barrel of WTI manages to sustain the gains, as markets continue to weigh the bearish US EIA crude inventory report, which showed that the US crude inventories jumped by 6.2 million barrels to 435.96 million barrels in the week to April 27, the highest level in 2018. More so, the US oil production also rose to a record of 10.62 million barrels per day (bpd), Reuters reported.

Looking ahead, oil prices will continue to get influenced by the USD dynamics ahead of the US data flow, as attention shifts towards Friday’s all-important US NFP and rigs count data.

WTI Technical Levels

To the upside, resistance levels are aligned at $ 68.50 (psychological levels), $ 68.78 (Apr 26 high) and $ 69 (round number). On the flip side, supports might located at $67.57 (daily low), $66.80/98 (May 1 & 2 low) and $66.36 (classic S2/ Fib S3).