WTI crude oil futures (CL!1) extending losses from last weeks 52.74 to 51.80. On NYME, crude oil futures for August delivery slumped 94 cents to trade at $51.80 a barrel during Europe morning hours. Prices were at around $52.39 prior to the release of the inventory data.
Crude inventory levels: Yesterday's losses evidenced followed by the data release of US oil inventory levels. The disappointing weekly data printed at -4.3 million from previous 0.4 milllion.
The U.S. Energy Information Administration reported in its weekly release that US crude inventories fell by 4.3 million barrels in the week ended July 10. Market analysts' expected a crude-stock fall of 1.2 million, while the American Petroleum Institute late Tuesday reported a decline of 7.3 million barrels.
Technical Glimpse: Weekly technicals suggest still a sell indications as there RSI signaling downward convergence with the slumping prices (currently RSI 14 trending at 35.0864), while %D crossover sustains on slow stochastic (currently %D line at 32.9094 & %K line at 10.1667), so overall we don't see any sort of strength in this commodity that can pull back from current levels.
Iran's nuke pact: The recent nuclear deal with Iran brings in plenty of headwinds along with it for oil prices as oil mining country seems to have robust exporting capacity. So, it is quite believable that supply equation can spoof up to the prevailing situation of crude.
