Oil is a little lower on the day, with WTI down by 0.1%
Yesterday's trading only managed a high of $69.38, as the $70 handle remains a tough level for buyers to move towards for a test at the moment. The high for the year came from last week - at $69.56.
Tensions in Iran continues to fuel the oil rally and OPEC's not-so-silent declaration to the end of the oil glut is helping to convince buyers that oil prices still have further room to the upside. The Saudis want oil at $80, but the first key step is to take out the $70 handle - which in itself will be a tough task.
Even if we do see a break, it'll be difficult to see it sustain above $70 given that it will invite US shale producers to join in on the fun.
As for current levels, the downside continues to be supported by the 200-hour MA (blue line) so that will be a level to watch out for today after private data surprised with a build on crude inventory here.
