WTI testing offers near $ 57 amid trade optimism, ahead of US data
|- Oil awaits fresh catalyst to extend the bounce above $ 57
- Bulls are relieved from renewed US-China trade deal hopes.
- But oil gains may be capped by rising oil supply concerns ahead of US data.
WTI (oil futures on NYMEX) is looking to extend the overnight bounce above the 57 handle, as the bulls find some solace from the renewed US-China trade optimism after both trade teams agreed to meet over trade talks later on Friday. Further, the goodwill gestures by China on Thursday, lifting the ban on the US poultry meat imports, also added to the fresh trade-positive environment.
However, the black gold failed to benefit from it, as the risk-off tone overshadowed amid re-emergence of global slowdown fears, in the wake of downbeat Chinese activity numbers and Germany narrowly averting a recession. The broader market risk-aversion sent the US Treasury yields tumbling alongside the Wall Street stocks and oil prices.
Moreover, the US crude inventory build further exacerbated the pain in the barrel of WTI. The official weekly US Energy Information Administration (EIA) Crude Stocks data showed that the US crude stockpiles rose last week by 2.2 million barrels, versus expectations for a 1.649 million-barrel rise.
Despite the downside, the bulls managed to draw some support from the OPEC’s smaller-than-forecast oil surplus going into 2020. In the day ahead, the US-China trade talks will be closely eyed for the next direction in the prices. Meanwhile, the commodity will take cues from the Baker and Hughes US Retail Sales and Rigs Count data due later in the NA session.
WTI Levels to watch
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