- US-China trade uncertainty, pre-OPEC meeting jitters continue to cap the upside.
- Russia’s Novak: Expects a balanced agreement among OPEC+ members in Vienna
- Focus on US rigs count data and Trump-Xi trade meeting for fresh direction.
WTI (futures on Nymex) is seen on a steady rise from daily lows reached just ahead of the 59 handle, but the bulls appear to lack vigor, as markets remain edgy awaiting the outcome of the Trump-Xi meeting on the prolonged trade spat.
The investors refrain from placing any directional bets on the US oil, a fallout on the US-China trade talks could be detrimental to the overall market sentiment and weigh heavily on the higher-yielding oil. A US-China trade is mostly priced-out by the markets, but both countries could reach a trade truce if the US agrees on relaxing the tariffs on Chinese goods.
Further, a sense of caution also prevails ahead of the key OPEC+ meeting due next week in Vienna, as it remains to be seen if the OPEC + agrees on extending the oil output cuts to help keep the oil markets balanced.
Meanwhile, the US dollar is seen broadly weaker, despite the bounce in the Treasury yields, which seems to lend some support to the black gold. A weaker greenback makes the USD-denominated oil cheaper for foreign buyers.
Looking ahead, the barrel of WTI will take some cues from the USD price-action and US rigs count data heading into the US-China trade talks on Saturday.
WTI Technical Levels
Share
