WTI extends the bullish consolidation above $ 58, US data eyed

• Oil bulls gathering pace for a test of the 59 handle.
• Trade deal doubts and dollar strength is limiting the upmove.
• Oil awaits fresh trade headlines and US Rigs and macro data for the next direction.

WTI (oil futures on NYMEX) is seen moving back and forth in a 50 cents range above the 58 handle so far this Friday, as the bulls consolidate the recent upsurge before the next push higher.  

The black gold pauses its two-day rebound in the European session, although remains in close vicinity of two-month tops of 58.66 reached a day before. The minor pullback in prices is mainly due to the lingering uncertainty over the US-China interim trade deal following dozens of mixed trade headlines from both countries.

The US-China trade anxiety continues to keep the investors unnerved and worries over its effect on the global economic and crude demand growth outlook. Therefore, markets resort to safe-havens such as the US dollar at the expense of the higher-yielding oil.

The barrel of WTI rallied on Thursday following the Reuters report that the Organization of the Petroleum Exporting Countries (OPEC) and Russia are likely to extend existing production cuts by another three months to mid-2020 when they meet in Vienna on Dec. 5.

Also, reports of the biggest drawdown in three months for the US crude stock stockpiles at Cushing, Oklahoma, collaborated to the recent upbeat momentum in the commodity. Attention now turns towards the US Manufacturing Sector activity report and Baker Hughes Rigs Count data for near-term trading opportunities.

WTI Levels to watch