- WTI prints 0.60% gains while refreshing the two-week top with intraday high of $41.55.
- Saudi Energy Minister warned to make the market “jumpy” even as Riyadh’s oil exports rise from a record low.
- OPEC+ showed readiness to take action against those not complying with the rules.
- US dollar moves, weekly Baker Hughes Rig Counts will be in the spotlight.
WTI seesaws near the early-month highs while taking rounds to $41.45/50 ahead of Friday’s European session. In doing so, the energy benchmark pays a little heed to Reuters’ piece conveying restoration of oil rigs in the Gulf of Mexico. The reason could be traced from the dull performance of the US dollar and mixed headlines from Saudi Arabia and the OPEC+ group comprising the Organization of the Petroleum Exporting Countries (OPEC) and its allies like Russia.
“US offshore drillers and exporters began a clearup on Thursday after Hurricane Sally weakened to a depression and started rebooting idle Gulf of Mexico rigs after closing the down for five days” said Reuters during the early Friday. The same could add into the 180 figures of weekly Baker Hughes US Oil Rig Count, up for publishing around 17:00 GMT.
Saudi Arabia copied the OPEC+ terms while showing readiness to attack those who are taking part in the price manipulations. “Anyone who thinks they will get a word from me on what we will do next, is absolutely living in a La La Land... I’m going to make sure whoever gambles on this market will be touching like hell,” Prince Abdulaziz bin Salman of Saudi Arabia said, per Reuters. “OPEC+’s key panel, known as the joint ministerial monitoring committee, pressed for better compliance with oil output cuts against the backdrop of falling crude prices as uncertainty reigns over the global economic outlook,” the news said further. As per the Saudi oil export data published on Thursday, the Arab push of oil rose in July to 5.73 million barrels per day (bpd).
Elsewhere, the US dollar still nurses the post-Fed losses while eyeing today’s Michigan Consumer Sentiment data for September, expected 75.00 versus 74.1 prior.
It’s worth mentioning that the fears of the coronavirus (COVID-19) resurgence are getting momentum in the UK and pushes Prime Minister Boris Johnson for a national lockdown. On the other hand, the US-China tussle is getting back on the table, this time over Taiwan, which in turn offers an extra barrier to WTI’s further upside.
Technical analysis
Considering the strength of the 200-bar SMA and signals of a pullback marked by the RSI, sellers remain hopeful. The same push them to look for entry if oil prices drop below the 61.8% Fibonacci retracement level of August 26 to September 08 downside, near $41.00. Meanwhile, a sustained clearance of $41.42 figures, comprising 200-bar SMA, will aim for September 04 top of $42.07 before the August 27 bottom near $42.50 challenge further rise.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD drops below 1.0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure and trades below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% MoM in February. Resurgent US Dollar demand is adding to the downside in the pair. US data are next in focus.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price bulls keenly await US PCE Price Index on Friday before placing fresh bets
Gold price (XAU/USD) continues with its struggle to make it through the $2,200 mark on Thursday and oscillates in a narrow trading band through the early part of the European session.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.