- WTI extends pullback from the multi-year low.
- US President Trump signaled to break the Saudi Arabia-Russia standoff.
- Recovering conditions in China adds strength to the U-turn.
- Baker Hughes Oil Rig Counts, risk catalysts in the spotlight.
Following its historical U-turn from the multi-year low, WTI stays positive while marking near 6.0% gains to $27.30 amid the pre-European session on Friday. The energy benchmark seems to take clues from the broad US dollar weakness, risk recovery and signals of an end to the Saudi-Russia standoff.
On Thursday, US President Donald Trump vowed to break the standoff between Saudi Arabia and Russia that offered a heavy downside pressure on the energy prices. Also favoring the black gold was the broad risk reset and US signals to levy fresh sanctions on Russia.
The risk-tone remains on the recovery mode amid the global policymakers’ efforts to tame the negative impacts of the deadly virus while receding cases from China also helps the oil prices.
The Baker Hughes US oil rig counts have been on the rise since the last three-weeks and flashed 683 counts in its latest outcome.
Other than the Baker Hughes data, coronavirus updates, as well as developments concerning the global output, could also direct the energy prices.
Technical Analysis
A seven-day-old descending trend line, near $28.45/50, acts as the immediate upside barrier whereas the bears can look for fresh entry below $22.00.
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