WTI tumbles to daily lows in sub-$71.00 levels

• Prices of the WTI trade on the defensive below the $71.00 handle.
• WTI in red figures after six consecutive daily advances.
• Potential sanctions against Iran, API-EIA reports behind the recent upside.

Prices of the barrel of the American reference for the sweet light crude oil are trading on a weak note and challenging at the same time the $71.00 key support.

WTI recedes from $71.86, 2018 tops

After reaching fresh tops around $71.80 during early trade, levels last seen in November 2014, sellers stepped in and are now dragging the barrel of WTI to fresh session lows in the $70.80 region.

The rally in WTI gained extra traction as of late in response to the potential re-implementation of sanctions against Iran after the US withdrew from the nuclear deal.

In addition, decreasing US crude oil supplies reported by the API and the EIA earlier in the week have also collaborated with the upbeat momentum around oil.

Today’s down move in oil prices come despite the greenback is trading on a weak footing, particularly after US inflation figures disappointed expectations during April.

WTI significant levels

At the moment the barrel of WTI is losing 0.77% at $70.77 and a breach of $69.23 (10-day sma) would aim for $68.47 (21-day sma) and finally $66.86 (low May 1). On the other hand, the next up barrier emerges at $71.86 (2018 high May 10) followed by $72.00 (psychological level).