WTI testing offers near $ 54.50 ahead of US data

0
  • Oil struggles to sustain the bounce amid trade and rising supply worries.
  • Losses remain capped amid solid Chinese Caixin Manufacturing PMI.
  • Next of relevance remains the US NFP and Oil Rigs Count data.

WTI (oil futures on NYMEX) traded modestly flat for the most part of Friday’s trading so far, barring a sudden spike to 54.52 highs seen last hour. The prices have returned to their familiar trading range, still holding above the 54 handle.

The cautious tone seen around the black gold can be mainly attributed to the lack of appetite towards the risk/ higher-yielding assets, as renewed concerns over the US-China trade deal continue to loom. The latest Bloomberg report suggested that China is doubting a long-term deal with the US.

Meanwhile, the sentiment around the barrel of WTI also remains weighed dented by rising global oil supplies while concerns over the global oil demand growth also keep the upside limited in the prices.

However, the bulls manage to derive some support from a big beat on the Chinese Caixin Manufacturing PMI data, as it arrived at 51.7 vs, 51.0 expectations. China is the world’s second-largest oil consumer. Despite the mild gains, the commodity remains on track to book about a 4% weekly loss.

The immediate focus now remains on the US Nonfarm Payrolls data for any near-term impact on the US dollar, which in turn would affect the USD-sensitive oil. Also, of note remains the US Baker and Hughes Oil Rigs Count data that will drop in at 1700 GMT.

WTI Levels to watch  

 

 

 

 

Get the 5 most predictable currency pairs

About Author

Comments are closed.