- Lacks impetus, as trade tensions negate falling US stockpiles-led optimism.
- Oil awaits fresh direction from the US jobs and drilling data.
WTI (oil futures on NYMEX) is back on the bids but remains confined within a tight trading range, having failed a tepid attempt above the $ 68 mark.
The steady price action seen in the barrel of WTI so far this Friday can be mainly attributed to reduced demand for risk asset amid ongoing US-Sino trade tensions and Emerging Markets (EM) turmoil.
Meanwhile, the black gold manages to derive support from falling US crude stocks, as reflected by the latest US EIA crude inventories report released a day before. The EIA data showed that the US commercial crude oil inventories fell by 4.3 million barrels to 401.49 million barrels in the week to Aug. 31, the lowest since February 2015.
The immediate focus now remains on the US payrolls data that could have a major impact on the USD-sensitive oil while Bakers and Hughes oilfield services US rigs count data could also provide the next direction in prices.
WTI Technical Levels
According to Jason Sen at DayTradeIdeas.com, “the outlook was negative & were likely to break 6855/45. Well done if you ran shorts! Gains are likely to be limited with first resistance at 6800/10 but above here targets a selling opportunity at 6860/70. Stop above 6900. Holding below 6780/70 keeps the outlook negative for today targeting 6755/45 & the low at 6710/00. I see no reason for this to hold today & further losses target 6680/75 then 6650.”
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