WTI on the bids amid US-Iran conflicts, China data in the spotlight
|- Geopolitical challenges supersede trade tussle-led demand worries.
- Political plays, China data, and Baker Hughes’ numbers can offer fresh impulse.
WTI remains on the bids around $52.50 during early Friday as the US allegations of Iran being behind the attacks on 2 oil tankers in the Gulf of Oman rekindled speculations of the US-Iran war.
The US claimed it has video footage showing Iranian coast guards removing mines from the ship while the UK also followed the suit and said it will conduct its own research based on the US news.
As rest of the global leaders like China, Japan, and the EU refrained from providing any direct statement concerning Iran’s hand in the issue, Tehran blasted over the US allegations and said it has nothing that can prove the fact.
With the geopolitical plays taking over the latest threats demand constraints due to the US-China trade tussle, investors may keep following the updates for fresh impulse.
Adding to the watch-list could be monthly industrial production and retail sales data from China and weekly oil rig count figures from the Baker Hughes.
China is the world’s largest industrial player and hence any headline data out of it has a direct impact on the commodity basket. May month retail sales are likely to rise by 8.1% versus 7.2% prior on a yearly basis while industrial production could also advance with a 5.5% mark against 5.4% previous increase on YoY.
Baker Hughes oil rig count data for the US marked depletion to 789 from 800 during the previous release and is up for publishing figures for the week to end on June 14 by later today.
Technical Analysis
FXStreet Analysis Ross J Burland says that WTI holds trend-line support while trading near 200-week exponential moving average (EMA). He further mentions that:
Bears will look for a push below the 14th Jan 50.41 low which guards the 26th November lows at 49.44. On the flip-side, a break of 53 opens 54.50 and 56 meeting the 20-D EMA.
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