WTI ignores latest trade/political headlines, clings to 21-day SMA
|- WTI stabilizes around $55.30 after two days of declines.
- US diplomats keep supporting the odds for a trade deal with China.
- North Korea warns the US, Iran unveils new missile defense system.
Despite disturbing geopolitical signs from North Korea and Iran, coupled with trade positive headlines concerning China and Japan, WTI remains modest while taking rounds to $55.30 during early Friday.
Not only the US President Donald Trump, but the White House Economic Larry Kudlow also portrayed a rosy picture of the US-China trade talks while anticipating Chinese diplomats’ US visit in September. Though, no clear words from China have been received on this aspect off-late.
North Korean Foreign Minister Ri Yong-ho recently said that we can remain the biggest threat to the US for a long time while criticizing the US Secretary of State Mike Pompeo and the US sanctions. Elsewhere, Iran unveiled a new missile defense system and also called the US talks ‘useless’, as per the Aljazeera.
Additionally, Japan’s Economy Minister Toshimitsu Motegi marked the progress of the US-Japan trade talk and signaled discussion between the US and Japanese leaders during this weekend’s G7 meeting.
On a different note, the US Dollar (USD) remains firm after upbeat comments from Fed policymakers like Esther George and Patrick Harker.
While no oil specific major news is on the economic calendar, except for the weekly Baker Hughes Rig Counts data for the US oil rigs, investors may keep an eye over the trade/political news for fresh impulse.
Technical Analysis
Prices are likely chopped in between 50 and 21-day simple moving average (SMA), namely $55.30 and $56.50, with either side break be likely receiving a major response.
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