WTI plummets to fresh six-day low below $70

• WTI suffers heavy losses for the second straight day on Thursday.
• Broad-based USD strength seems to be dragging crude oil prices lower.
• Lack of progress in Iran nuclear talks further weighs on WTI.

After reaching its highest level since October 2018 at $72.96 on Wednesday, the barrel of West Texas Intermediate (WTI) made a sharp U-turn and snapped a four-day winning streak, losing more than 1%.

Although WTI stayed relatively quiet around $72 during the European trading hours, it came under renewed bearish pressure and dropped to its lowest level in nearly a week at $69.75 before rebounding modestly. As of writing, WTI is trading at 1.72% on the day at $70.45

DXY rally remains intact

The broad-based USD strength following the hawkish shift witnessed in the FOMC's Summary of Projections seems to be the main market theme in the second half of the week. Currently, the US Dollar Index (DXY) is trading at its highest level in more than two months at 91.90, rising 0.55% on a daily basis.

Meanwhile, investors remain cautious about Iran and the US coming to an agreement on nuclear talks that could lead to the lifting of sanctions on oil exports ahead of the upcoming election in Iran on Friday.

Technical levels to watch for