WTI stuck in range below $ 59, still eyes 7% weekly gain

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  • WTI supported by rife Mid-East tensions, but awaits fresh impetus.
  • Geopolitical and trade developments to dominate amid US Rigs Count data.

WTI (futures on Nymex) extends its consolidative mode into a third straight day on Friday, as the prices continue to gyrate around 58.60 levels. Despite the side-trend, the black gold remains on track to book over 7% weekly gain.

Upside appears more compelling after Saudi attacks

The barrel of WTI holds onto the overnight gains after Saudi state media reported that Saudi-led coalition launches military operation in Yemen, in response to last Saturday’s Houthi attack on the Kingdom’s oil facilities that knocked-out 5% of the global supplies.

However, the bulls lack follow-through amid receding fears over Saudi supply disruption after Saudi Aramco Executive said that “we are confident of returning to full production by the end of September”. Moreover, cautious risk sentiment also keeps the bulls on the edge, as markets eagerly await clarity on the US-China trade front, with the trade negotiations restarted on Thursday.

Also, markets take it easy after a busy central banks’ heavy week, leaving the rates largely in the familiar ranges below 59.50 levels. All eyes now remain on the Baker Hughes US Rigs Count data and Mid-East developments for the next push higher in oil.

WTI Levels to watch

 

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