WTI finds support once again ahead of $ 51 on expected OPEC cuts

• Reverses losses, as hopes of OPEC output cuts next week underpin.
• But the upside appears capped amid risk-off, rising US crude supplies.
•  Focus shifts to the US rigs count data due later today at 1800 GMT.

WTI (oil futures on NYMEX) jumps back on the bids in the European session, having reversed a dip to 51.12, as the sentiment remains buoyed by increased expectations that the OPEC + will deliver on the much-debated output cuts when they meet next week in Vienna.

On Thursday, the industry sources noted that Russia is considering to join in Saudi Arabia in cutting the output ahead of the OPEC meeting. The source said: “The idea at the meeting was that Russia needs to reduce. The key question is how quickly and by how much.”

However, it remains to be seen if the black gold manages to sustain the bounce amid a cautious market environment, as reflected by negative European equities and Treasury yields. Markets remain on the edge and refrain from placing any bets on the risk assets ahead of the much-awaited Trump-Xi trade war dinner held tomorrow at the G20.

Moreover, swelling US crude inventories also continue to keep a check on the prices. The latest EIA data showed that the US crude reserves increased 6.4 billion barrels, or 19.5 percent, to 39.2 billion barrels at year-end 2017, marginally higher than the previous record of 39 billion barrels set in 1970.

All eyes now remain on the US drilling sector activity report due to be published by Bakers Hughes oilfield services company later today at 1800 GMT for further trading impetus.

WTI Technical Levels