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  • The escalating doubts over the US-Iran relations and trade tensions challenge sentiment.
  • Baker Hughes data can offer intermediate moves with major focus to be on news headlines.

Amid growing tensions from the US-China trade deal and the US-Iran relations, WTI trades near $61.60 during early Friday.

The energy benchmark remained under pressure on Thursday as mixed headlines spread concerning the trade agreement between the US and China.  However, worsening relations between the US and Iran have been limiting the black gold’s downside.

Lawmakers from the US and China are in a meeting room discussing future trade ties between the world’s two biggest economies on early Friday. The US has recently levied fresh ban of Iran’s metal exports.

The US President recently said that he is positive to the outcome considering a nice letter from his Chinese counterpart.

On the other hand, the US Secretary of State Mike Pompeo continued taking a tough stand against Iran. News from CNN conveyed that Mr. Pompeo said that the US will be swift in its retaliation to Iran’s actions be it positive or not.

Looking forward, traders will be more responsive to the qualitative catalysts due to lack of statistics up for release except for weekly readout of the Baker Hughes US oil rig counts. The private count report of the US oil rigs rose to 807 from 805 during its latest release conveying results for the week ended on May 03.

Technical Analysis

A 10-day old descending trend-line, at $61.75, gains immediate attention of the oil players, a break of which can propel the quote to 200-hour moving average that’s currently around $62.70. During the price run above $62.70, late-April highs near $64.80 and the previous-month tops near $65.60 should be observed closely.

Alternatively, $61.00 and an eight-week long upward slopping support-line at $60.00 seem to get sellers’ attention amid declines. Also, 61.8% Fibonacci retracement of its March – April upside, at $59.10, followed by $57.80, can become bears’ favorites afterward.