FxWirePro: WTI depressed on likely return of Iranian supply, looks set to test 20-DMA at 64.95

USOIL chart - Trading View 

West Texas Intermediate spot is currently trading at $65.65, down 0.73% at the time of writing.

Oil prices dampened amid concerns over increased supply by a likely return of Iranian supply, as nuclear talks progress.

Fed’s tapering expectations, which keeps the sentiment around the US dollar buoyed also weigh on commodity prices.

A relatively bullish inventories data on Wednesday failed to underpin oil prices. WTI closed largely unchanged for the day.

Data released by the Energy Information Administration (EIA) on Wednesday showed inventories dropped by more than 1.66 million barrels last week. 

The drop was a bigger drop than the expected 1.05 million and last week’s drop of 402k barrels. The US imported 265k barrels of oil while the weekly distillate stocks fell by more than 3 million barrels. 

WTI price action is currently holding support at 5-DMA, break below will drag the price lower. Scope for test of 20-DMA at 64.95. 

Daily cloud is major support on the downside. Breach below cloud will open downside.