WTI extends the rebound on upbeat fundamentals

Dhwani Mehta FXStreet

Oil futures on NYMEX are seen higher for the second straight session this Friday, extending its rebound further beyond $ 52 barrier.

Oil eyes rigs data, Trump

Currently WTI advances +0.58% to $ 52.40, now eyeing a test $ 53 mark. Oil prices trade with moderate gains so far this session, as sentiment remains supported amid renewed hopes of tighter oil market in 2017 on OPEC output cut deal compliance.

Further, latest Chinese data showed upbeat Q4 GDP, which also added to the upside oil, while reports of record Chinese demand, evidenced by Crude throughput hitting the highest level in history for the year at 10.79 million bpd, strengthened the ongoing bullish momentum.

However, it remains to be seen if the black gold can extend gains further, as yesterday’s bearish EIA crude inventory report may put a lid on the prices. Crude inventories rose 2.3 million barrels in the week to Jan. 13, compared with expectations for an increase of 342,000 barrels.

Next on tap for the commodity remains the US rigs count data ahead of Trumps inauguration, which is likely to have significant impact on the USD-sensitive oil.

WTI technical levels

A break above $ 53 (round figure) could yield a test of Jan 17 high of $ 53.52. While a breach of support at $ 51.56 (50-DMA) would expose the psychological level of $ 51.

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.

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