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

  • 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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