WTI consolidates above $61.00 mark, rising supply concerns capping gains

Haresh Menghani FXStreet

• IEA's oil demand growth forecast helps build on overnight up-move.
• Concerns about rising supply keep a lid on any further strong gains.

WTI crude oil held on to its modest daily gains through the mid-European session on Friday and was seen consolidating daily gains, above the $61.00/barrel mark.

In its monthly report released on Thursday, the IEA increased its global oil demand growth forecast for 2018 and remained supportive of the commodity's minor uptick. The positive outlook, to some extent, was negated by concerns about rising supply from the US and kept gains under check.

Increasing supply from producers outside of the OPEC (Organization of the Petroleum Exporting Countries) offset efforts by world's biggest oil producers, led by OPEC and Russia, to cut supply and reduce global stockpiles, and was eventually seen capping any additional up-move.

Nevertheless, the black gold remains on track to post a weekly loss of over 1.0%, reversing the majority of its last week's up-move, as traders now look forward to the weekly Baker Hughes US Oil Rig Count report, due later during the NY session, for some fresh impetus.

Technical levels to watch

Below the $61.00 mark, the commodity is likely to find support near $60.70 level, which if broken could accelerate the fall back towards $60.15-10 strong support. On the upside, bulls would be eyeing for a move beyond $61.65-70 hurdle, above which the commodity seems all set to surpass the $62.00 handle and aim towards testing $62.60 strong barrier.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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