WTI: Choppy around $ 58 amid Black Friday slow trading
- Oil lacks directional bias amid holiday-mood dull trading.
- Buyers switch to wait and see mode ahead of the OPEC + meeting.
- Focus stays on US-China trade developments.
WTI (oil futures on NYMEX) continues to fluctuate between gains and losses so far this Black Friday, as the sentiment remains mixed amid holiday-mode thin trading and ahead of the key OPEC+ meeting scheduled next week.
The black gold lacks directional bias at the moment, with the buyers somewhat hopeful about the output cuts being extended into the next year, when the OPEC and its allies (OPEC+) meet in Vienna on Dec. 5.
However, oil prices remain undermined by the ongoing uncertainty on the US-China trade front, in light of the escalating political tensions between both countries over the Hong Kong human rights issue. The prolong US-China trade war has weighed heavily on the global economic growth and in turn on the oil demand outlook.
Moreover, rising US crude supplies keep the bulls struggling for a sustained move up. According to the latest Energy Information Administration (EIA) data published on Wednesday, the US crude oil inventory saw an increase of 1.6 million barrels for the week to November 22.
In the day ahead, the barrel of WTI will continue its range play, with the bias likely towards the downside amid trade anxiety and light trading. Its worth noting that a doji is spotted on the WTI weekly sticks, indicating indecision to persist in the coming days.
WTI Levels to watch
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
