WTI looks to regain $ 62 mark ahead of US rigs data

WTI (oil futures on NYMEX) is seen gathering pace for a sustained break above the 62 handle, now consolidating in a 40-pips narrow range, as investors await the US drilling sector activity report for the next push higher.

The barrel of WTI extends its bullish move for the third straight session, although remains poised to book the first weekly loss in six weeks. The ongoing declines in the US dollar, in response to growing fears over the impact of the US tax cuts and faster Fed tightening on the US economy, pushes the black gold to the highest levels seen in the last six trading days while rising global stock markets boost the demand for risk/ higher-yielding assets such as oil, despite holiday-thinned light trading. China, the world’s second-largest oil consumer is off on Lunar New Year.

Moreover, the latest comments from the UAE Energy Minister Al-Mazroui also collaborated to the upbeat tone around the prices. Al-Mazroui noted that the OPEC and non-OPEC producers are considering drafting an agreement on a long-term alliance by the end of this year.  The Saudi Arabian Energy Minister Al-Falih’s comments delivered earlier this week that he was confident on the OPEC output cuts deal compliance, also remained oil-supportive.

Markets now eagerly await the US rigs count data due to be published by the US oilfields services company Bakers and Hughes later in the American morning.

WTI Technical Levels

At $ 61.77, the resistances are aligned at $$62 (round figure) ahead of $62.32 (50-DMA) and $63.02 (20-DMA). On the downside, the supports are located at $ 60.95 (daily pivot), $60.72 (10-DMA) and $60.27 (Feb 8 low).