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  • WTI underpinned by OPEC+ supply cuts hopes on Russia’s support.  
  • Risk-off, rising US oil stocks and broad USD strength limits gains.
  • Focus on US payrolls and oil rigs count data for fresh directives.

WTI (oil futures on NYMEX) extends its consolidation phase, following a recovery from a 13-month low of $49.47, into a second straight day on Friday, as the bulls turn cautious amid rife risk-aversion spread by rising China coronavirus fears internationally.

Investors continue to fret over the negative impact of the virus outbreak on global economic growth, which eventually translates into oil demand growth concerns. Moreover, broad-based US dollar strength, in response to stronger US economic data, combined with concerns over rising US oil supply continues to limit the upside attempts in the black gold.

However, the downside appears cushioned by increased expectations of the OPEC and its allies (OPEC+) likely extending its output cuts to battle against the coronavirus negative economic impact, with Russia lending support to the OPEC+ recommendation.  

Attention now turns towards the US Employment data and Baker Hughes Oil Rigs Count, in order to gauge the next direction in prices.

WTI Technical levels to consider

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