- Energy traders await US jobs data to weigh chances of the global recession.
- Trade jitters continue while supply data disappoints bulls.
- Baker Hughes numbers also grab market attention.
While failed Washington talks entertained traders during initial hours, absence of Chinese players and market’s nervousness ahead of the US NFP holds WTI close to $53.00 during the early Asian session on Friday.
Lack of energy-linked data pushed crude towards taking advantage of the greenback’s weakness on Thursday while giving less importance to previous increases in the US stockpiles data.
Adding to the optimism could be the statements from the International Monetary Fund (IMF) Director Christine Lagarde who sees no global recession ahead.
Recently the Arab News said that the US and Iran are close to finalizing a deal that will allow Iran to export its oil (on a limited basis) in exchange of goods. The news report mentions that lawmakers from both countries are still discussing while Iraq is most likely to en-route the trade.
Markets gave little reaction to the news as investors await May month employment data from the US in search of clarifying latest doubts over the Fed’s rate cut. The headline nonfarm payrolls (NFP) may tick down to 185K from 263K prior whereas the unemployment rate and average hourly earnings (YOY) could remain unchanged at 3.6% and 3.2% respectively.
Furthermore, the weekly release of Baker Hughes oil rig count for the US may offer resource data to predict near-term WTI moves. During last week, the US oil rigs stood improved slightly from 797 to 800.
Technical Analysis
While a sustained break of $53.50 can trigger the back gold’s fresh advances to $54.60 and $56.50, $50.50 – $50.00 area comprising multiple lows marked since November 2018 becomes tough support to watch during the downside.
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