WTI bounces-back to $ 68.50 ahead of US rigs data

• Manages to hold above $ 68 mark amid resurgent USD buying.
• Unable to find direction amid impending US decision on Iran sanctions looms.

WTI (oil futures on NYMEX) failed to keep the consolidative mode intact and broke lower to test the $ 68 threshold, before finding fresh buyers ahead of the last to now revert towards the 68.50 barrier.

The choppy trading seen in the black gold is largely on the back of increased nervousness ahead of the US decision on Iran sanction due to be announced next week. More so, markets remain on the edge ahead of the US rigs count data slated for release today, with the swelling US production and inventories build weighing down on the investors’ sentiment.

Meanwhile, broad-based US dollar strength heading into the crucial US jobs report also keeps the oil bulls on the back seat, as upbeat US wages figures are expected to trigger an extensive USD rally across the board, which could knock-off the USD-sensitive oil.

WTI Technical Levels

To the upside, resistance levels are aligned at $ 68.64 (daily top), $ 68.80 (Apr 26 high) and $ 69 (round number). On the flip side, supports might be located at $ 68.14 (daily low), $ 67.86 (20-DMA) and 66.80/98 (May 1 & 2 low).