Crude edges lower ahead of inventories' reports

• EIA expected to show a 1.2M barrels build for the week ended March 23rd.
• Tensions in the Middle-East undermine demand for the commodity.

Crude oil prices eased by the end of the day to fresh weekly lows, with West Texas Intermediate crude futures now trading around $64.80 a barrel and Brent down to 69.66. There was no particular catalyst for the latest decline, and in fact the commodity started the day with a strong note, advancing again toward its recent highs in the 66.60 region, but turned south fast afterward, also undermined by profit-taking, and ahead of the US stockpiles reports, expected to show an increase for the week ended March 23rd.

Crude oil stockpiles fell unexpectedly last week as imports dropped and refining rates accelerated, sending the commodity to re-test the multi-year highs achieved last January, although the market is not yet ready to push it further up. Tensions in the Middle-East, with Trump menacing to pull out from the Iran nuclear deal and bring back sanctions on the OPEC's country, weighed on oil. The API report will be out after Wall Street's close while the weekly EIA one will be out on Wednesday, this last, expected to show a 1.2 million barrels increase

Technical outlook

WTI is down for a second consecutive day, but given that it holds around 65.00, the movement remains corrective. Daily basis, the commodity struggled around the 100 DMA late February/early March but managed to recover strongly from the indicator, now a line in the sand for bulls, currently at around 61.50. Beyond the mentioned 66.60 region, and helped by positive market news, US oil has scope to extend its advance up to $70.00 a barrel.