WTI (futures on NYMEX) stalls its two-day uptrend and holds steady around the $69 mark, as markets weigh in the latest report from the International Energy Agency (IEA) and US output policy. The US oil is alternating between gains and losses, with the recent upside losing momentum after the IEA slashed the global oil demand outlook for the rest of this year due to the spread of the COVID-19 Delta variant. Meanwhile, the White House calling on the major producers to boost output re-ignited supply concerns and kept a lid on WTI’s upside.
However, the downside remains capped amid a broadly weaker US dollar, as softer CPI data faded Fed’s tapering expectations. A weaker greenback offers support to the dollar-denominated oil. Clear trading above $69.00 becomes necessary for the oil buyers to aim for 200-SMA near $71.40. During the rise, the $70.00 threshold may offer an intermediate halt. Alternatively, the commodity’s further declines will aim to retest the previous resistance line around $68.10, a break of which will direct WTI sellers to the short-term support line near $66.80.