- Risk-on sentiment amid easing China slowdown fears, USD weakness offers a fresh lift to oil.
- Focus shifts to US consumer sentiment and Baker Hughes rigs count data for further momentum.
WTI (oil futures on NYMEX) jolted higher last higher and reached fresh two-day highs at 64.50 levels, following a steady rise seen so far this Friday. The US oil remains on track to book the sixth straight weekly gain, scoring the best run in three years.
The latest 70 cents rally in the black gold was flagged by an aggressive selling seen in the US dollar following a sudden turnaround in the risk sentiment, as a risk-on wave gripped the European markets amid easing China slowdown worries. The USD index slipped further to hit two-week lows at 96.85, down -0.33% on the day.
The barrel of WTI also derived support from the latest comments by the Libyan Oil Chief, as said that the renewed Libyan fighting could wipe out crude production. Meanwhile, the ongoing OPEC supply cuts and the US sanctions on Iran and Venezuela continue to keep the buoyant tone intact around the commodity. The latest IEA monthly oil market report showed that the Venezuelan oil output plummets to 870,000 bpd on outages and sanctions.
In the day ahead, the prices will continue to track the broader market sentiment and USD dynamics before the releases of the US prelim UoM consumer sentiment and the drilling sector activity report for near-term trading opportunities.
WTI Technical Levels
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