WTI Oil remains bid at 8-month high, ignores Baker Hughes data

Oil remains bid at 8-month high of $53.78
Baker Hughes data showed US drillers add oil rigs for the first week in four, but cut rigs for a third month in a row

Omkar Godbole FXStreet Contributor

Oil has hardly moved following the release of the Baker Hughes weekly oil inventory report.

At the time of writing, the front month WTI contract is trading at $53.78; up 2 percent on the day. Prices hit a high of $53.92 earlier today.

Baker Hughes data released a few minutes ago showed the number of operational rigs in the US rose to 737 this week vs. 736 last week. The minor uptick has gone unnoticed as investors continue to cheer the increased odds of the global output cut deal extension beyond March 2018.

Saudi Arabia and Russia have declared support for extending a global deal to cut oil supplies for another nine months. It is also being reported that Chevron and Exxon both missing their production guidance for the third quarter also strengthened bid tone in oil prices.

WTI Oil Technical Levels

A break above $54.00 (psychological level) would open up upside towards $54.94 (Feb high) and $55.24 (2017 high). On the downside, breach of support at $52.86 (Sep high) could yield a sharp pullback to $51.914 (previous day's low) and $51.55 (Oct 24 low).

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

GBP/USD defends 1.3300 after strong UK PMI data

Following Thursday's sharp decline, GBP/USD clings to small gains above 1.3300 in the American session on Friday, supported by the upbeat UK Retail Sales and July PMI data. Nevertheless, the pair's upside remains capped as investors cling to a cautious stance amid a further escalation of tensions in the Middle East. The US July PMI data failed to trigger relevant price action.

EUR/USD remains below 1.1400 after mixed US PMIs

EUR/USD pressures daily lows below the 1.1400 mark in the American session on Friday. Mixed S&P Global PMIs, as manufacturing output contracted while services activity expanded in July, triggered no relevant market reaction. The focus remains in Middle East developments and inflation-related concerns.

Gold reclaims $4,100 os Iran diplomacy hopes temper Fed hike bets and weigh on USD

Gold looks set to build on a modest bullish gap-up opening on Monday, beyond $4,100, as hopes of US-Iran peace talks weigh heavily on crude oil prices, easing inflation fears and tempering Fed rate-hike bets. Moreover, the optimism drags the safe-haven US Dollar away from a one-month top, touched on Friday, and supports the non-yielding bullion. The focus now shifts to the crucial FOMC policy meeting this week.

Week ahead: Fed, BoE and BoJ face inflation test as markets reprice interest rate paths

The US dollar gained against the other major currencies this week amid the escalating tensions in the Middle East as well as US President Trump’s decision to proceed with a new round of tariffs after previously imposed levies expired.

Australian Dollar outlook: Chances of another rally won’t be decided in Canberra, but in Washington

The Australian Dollar rode a rollercoaster in the first half of the year, hitting a four-year high and then correcting. The currency enters the second half with an outlook full of uncertainty due to renewed hostilities in the Middle East, which clouds the inflation outlook and interest rates.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.