- Oil loses momentum after posting gains for six straight days.
- US economy is expected to expand 2.1% in third quarter.
- WTI remains on track to end week in positive territory.
Crude oil’s rally finally seems to have lost its momentum as investors shift their attention to the Gross Domestic Product (GDP) and the weekly Baker Hughes Oil Rig Count data from the United States. The barrel of West Texas Intermediate, which rose to its highest level in more than three months at $61.38 on Thursday, was last seen trading at $60.90, erasing 0.22% on a daily basis.
Oil bulls look exhausted
Earlier in the week, the upbeat Industrial Production data from the US and China eased worries over a protracted slowdown in the global manufacturing activity and provided a boost to crude oil prices.
Additionally, the Energy Information Administration’s weekly data showed that crude oil stocks in the US fell by more than 1 million barrels to further support the WTI’s rally. Despite Friday’s correction, the WTI remains on track to post weekly gains for the third straight week and adds more than 10% since the start of the month.
Later in the session, an upbeat GDP reading from the US could help WTI gain traction but the commodity seems to be technically overbought and it could have a difficult time advancing decisively above the $61 mark.
Technical levels to watch for
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