- WTI is trading firmer around the highest since late-September.
- Receding calls of a stop in OPEC+ production cuts, geopolitical tension surrounding Iran have recently been making rounds.
- Clarity over the US-China trade deal required, activity numbers from the major economies are also the key.
WTI buyers cheer the latest price positive sentiment at the OPEC+ and geopolitical tension concerning Iran amid a lack of major catalysts on early Friday. That said, the black gold takes the bids to $58.30, near the recently flashed two-month high of $58.70, by the press time.
Russia’s President’s comments to respect commitment to the OPEC+ output reduction seems to have pleased the oil traders off-late. Even so, Reuters said that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, popularly known as OPEC+, has no plans to deepen current il output cuts during the December meeting.
On the geopolitical front, Iran’s official announcement to have tamed the latest protests, which led to national internet outage, seems to remain under doubt. Also, news that the Houthi rebels have gunned down the Saudi coalition F-15 provided additional strength to the energy benchmark.
Elsewhere, the US-China trade sentiment remains sluggish after the US Congress passed Hong Kong bill. Though, the latest signs that the Trump administration may delay December tariff hikes, coupled with Beijing’s invitation for further trade negotiations, keep buyers hopeful.
Market players are now looking for fresh clues to extend the latest run-up. In doing so, trade headlines and Purchasing Managers Index (PMI) numbers form the Eurozone, the United Kingdom (UK) and the United States (US) will be important to watch. Further, a weekly release of the Baker Hughes US Oil Rig Count, 674 prior, will also gain investor attention.
Technical Analysis
Prices need to close beyond 61.8% Fibonacci retracement of September-October downside, at $58.55, to aim for September 19 high of $59.45 and $60.00. During the pullback, the recent lows near $54.90 and $53.80/75 can become sellers’ favorites.
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