WTI takes a U-turn, drops to test $ 66.50

• Risk-on back in vogue following Kremlin’s statement?
• USD buying fizzles out, prompts oil-price recovery, but for how long?

WTI (oil futures on NYMEX) stalled its recovery mode once again above $ 67 mark, as the recovery in the risk sentiment following Kremlin’s soft stance on Syrian angst was short-lived.  Kremlin, in its latest statement, cited that it’s extremely important to avoid steps that could threaten to raise tensions in Syria.

The renewed upside also fizzled out, as concerns over rising US output levels weigh down on the commodity. The Energy Information Administration (EIA) crude inventories report showed yesterday that the crude oil inventories rose by 3.3 million barrels to 428.64 million barrels, while the US crude production last week hit a record 10.53 million barrels per day (bpd).

Meanwhile, the upward revision made to the Brent-price forecast by Barclays could offer some support to the black gold. Looking ahead, markets will continue to watch out for the headlines on Syria for fresh trading impetus.

WTI Technicals

At $ 66.66, the next resistances are aligned at $ 67.42 (yearly tops), 68 (round number) and $ 68.78 (classic R2/ Fib R3). To the downside, supports are located at $ 66.48 (daily pivot), $66 (key support) and 64.91 (5-DMA).