- Tighter supplies, US-China trade deal hopes offset US tariffs hike
- Markets focus on US-China trade talks for the next direction.
WTI (futures on Comex) enjoyed good two-way businesses so far this Friday, now consolidating the latest leg up from near 61.50 region, as the bulls lack momentum heading into the Day 2 of the US-China trade talks due later today.
In an up and down Asian session today, the black gold extended its overnight recovery and tested the 62.50 barrier before reversing sharply the 61.53 daily low, as the risk sentiment soured after the US tariffs hike on the USD 200 billion Chinese imports took effect.
In the European session so far, the barrel of WTI has stabilized in tandem with the risk sentiment and keep its recovery mode intact around the 62 handle, underpinned by increased expectations that the US-China could clinch a trade in the last minutes of their ongoing trade negotiations.
The sentiment around the commodity also remains underpinned by tighter global supplies amid ongoing OPEC cuts, the US sanction on Iran and a drop in the US crude stockpiles. The latest US EIA data showed an unexpected drop in the US crude inventories by 4 million barrels in the week to May 3rd.
Markets await the outcome of the US-China trade talks for the next direction in the prices. In the meantime, the risk trend and Baker Hughes oil rigs count will offer some trading incentives.
WTI Technical Levels
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