- WTI rebounds on hopes OPEC+ output cut next Monday.
- Oil bulls ignore broad USD strength amid coronavirus-led risk-off.
- All eyes on OPEC headlines and US NFP data for fresh impulse.
WTI (oil futures on NYMEX) enjoyed good two-way businesses so far this Friday, as it corrected sharply from two-week highs to $23.50 region before witnessing a sharp upturn in European trading.
The black gold consolidated briefly between 23.50-24.50 range until the bulls caught a fresh bid wave in the last couple of hours, with the two-week high of 27.30 back in sight. At the press time, the US oil rallies nearly 5% to trade at 26.55.
The turnaround in the barrel of WTI was mainly driven by the reports that the OPEC and non-OPEC producers (OPEC+) are likely to debate oil output cuts of 10 million barrels per day (bpd) when they gather over an emergency meeting next Monday.
Meanwhile, the latest comments from an OPEC+ delegate also bolsters the sentiment around the oil. Bloomberg reports the delegate, saying that he sees a global output cut of 10 mil bpd as a realistic goal. He added that the OPEC+ wants global oil producers meeting as soon as possible.
The ongoing efforts by the US and Saudi Arabia to stem the oil price decline seem to have boded exceptionally well for the commodity. The prices jumped 20% on Thursday and pierced through the 27 barrier after US President Donald Trump said that Saudi and Russia could soon reach a deal to cut the production by 10 to 15 million bpd while markets see a potential price war truce.
In the day ahead, the OPEC+-related headlines will continue to influence the prices, the US Non-Farm Payrolls hold a key to the risk trends, in light of the coronavirus crisis.
WTI technical levels to consider
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