- Oil re-attempts $ 53 mark on USD weakness, hopes of more OPEC cuts.
- Will WTI regain 53.00 amid US-China trade woes, bearish IEA forecast?
- All eyes on US Rigs Count data for fresh direction on oil.
WTI (futures on Nymex) is seen making another attempt to regain the 53 handle in the European session this Friday, having found some support near 52.40 region.
IEA warns oil demand growth so far in 2019 lowest since 2008
The black gold looks to extend the previous recovery from seven-month lows, as the sentiment remains buoyed by broad-based US dollar weakness and expectations that the OPEC+ producers could resort to additional oil output cuts. This comes after Saudi Arabia, OPEC’s No.1 oil producer, called other producers to discuss the recent slide in crude prices.
Meanwhile, the US dollar remains on the back foot across its main competitors amid dovish Fed expectations and falling Treasury yields, as markets continue to weigh in the risks of a US economic recession. A weaker greenback makes the USD-denominated oil cheaper for the holders in foreign currencies.
Looking ahead, it remains to be seen whether the prices can yield a sustained break above the 53 handle, as lingering US-China trade worries continue to dent the oil demand growth outlook. Adding to the demand concerns, the International Energy Agency, in its latest monthly report, slashed its global oil demand growth forecasts for this year and the next.
Furthermore, the downside risks loom amid swelling US crude inventories, as the focus now shifts towards the US Baker Hughes Oil Rigs Count data due on the cards later today at 1700 GMT.
WTI Levels to watch
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