WTI climbs to fresh two-week highs above $52
|- Crude oil looks to snap five-week losing streak.
- US Energy Secretary downplays coronavirus impact on oil.
- Russian oil producers favour extending crude oil output cuts.
The barrel of West Texas Intermediate (WTI) fell below the $51 handle on Thursday but recovered a large portion of its losses to close the day at $51.50 on easing concerns over the impact of the coronavirus outbreak on the global energy demand.
Eyes on OPEC+ decision on output cuts
With markets hoping for OPEC+ to either deepen or extending oil output cuts, the WTI extended its rebound and rose above the $52 mark for the first time in February. As of writing, the WTI was up 1% on the day at $52.05.
US Energy Secretary Brouillette on Thursday argued that the coronavirus outbreak was unlikely to have a significant impact on the oil market. "If the Chinese market is off by half a million barrels, that is 0.5% of total market, we are not going to see that impact on pricing very dramatically," Brouillette told Reuters.
In the meantime, Russian oil producers favour extending oil production cuts rather than deepening them, S&P Global Platts reported on Friday, citing Russian oil giant Gazprom Neft’s CEO Alexander Dyukov.
Later in the day, Baker Hughes' weekly Oil Rig Count data will be looked upon for fresh impetus.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.