WTI weaker near $ 68 as broad USD demand weighs

• Higher Treasury yields and DXY weigh negatively on oil prices.
• Looks to extend the corrective slide towards $ 67.50.

WTI (oil futures on NYMEX) is seen extending its gradual declines below the $ 68 mark, as the bears look to extend the corrective slide from multi-year peaks reached at $ 69.56 last Thursday.

The renewed selling pressure on oil prices is largely seen on the back of aggressive broad-based US dollar buying, following the extensive rally in 10-year Treasury yields to near 3 percent figure.  

Moreover, rising US rigs count numbers combined with mixed comments from the OPEC Minister/ official also adds to the weight the black gold. The US drillers added five rigs drilling for new production in the week ended April 20, bringing the total to 820, the highest since March 2015, Reuters reports.

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Furthermore, the tweets by Trump, accusing the OPEC of “artificially” boosting oil prices, threatening that this “will not be accepted”, also keep the bearish pressure intact around the barrel of WTI.

Looking ahead, the US weekly crude supplies data are eagerly awaited for fresh oil trades. In the meantime, the sentiment around the greenback and Treasury yields will have a strong bearing on the oil markets.

WTI Technicals

At $ 67.94, the next resistances are aligned at $ 68.27 (daily pivot/ 5-DMA), $ 69.56 (multi-year highs) and $ 70 (key psychological levels). To the downside, supports are located at $ 67.57 (10-DMA), $ 67 (round number) and $ 66.56 (Apr 18 low).