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  • Oil recovers +1% as OPEC supply cuts and Middle East tensions pose supply risks.
  • Set for biggest weekly loss heading into US durable goods and drilling data.

The WTI (futures on Comex) recovery from two-month lows of 57.34 fizzled out in Europe near 58.75 region, as the bulls now consolidate the gains awaiting the next trading impetus, with the US durable goods and oil rigs count data due later today in NA session.

The steady recovery in the black gold remains supported by the looming supply disruptions, arising from the US sanctions on Iran’s exports and escalating Middle East geopolitical tensions. Moreover, the ongoing OPEC oil output cuts also continue to add to the global market tightness and keep the sentiment lifted around oil.

Despite the latest pullback, the barrel of WTI remains on the track to book the biggest weekly loss so far this year. Oil prices extended this week’s fall and hit the lowest levels since March, 13th on Thursday after swelling US oil inventories and disappointing US manufacturing PMI cast doubt on the US health, already hit by the escalating US-China trade tensions.

WTI Technical Levels