- Oil keeps Friday’s bullish momentum intact on trade hopes.
- Mixed US economic data and risk-on continues to undermine the US dollar.
- Russia’s output cut and drop in US Rigs Count also support oil prices.
WTI (oil futures on NYMEX) kicked-off the brand-new week on a positive note, hitting fresh five-day highs at 56.41. But backed-off quickly amid a lack of fresh catalysts and holiday-thinned markets, as Japanese markets are closed on a National holiday.
Despite the pullback from multi-day tops, the black gold manages to hold above the 56 handle, regained on Friday. The prices surged over $ 2 last Friday after the US and Chinese trade negotiators announced: “enormous progress” toward reaching a “phase one” agreement that lifted the overall risk sentiment and boosted the demand for the risk/ higher-yielding assets.
Further, the sentiment around the barrel of WTI was also buoyed by the broad-based US dollar weakness, triggered following the disappointing US manufacturing sector activity reports that doused the US jobs data-led USD rally. In the Asian trading so far, the US dollar continues to remain broadly weaker amid the post-FOMC and US data follow-through. A weaker US dollar makes the US-denominates oil more attractive to foreign buyers.
Adding to the bullish tone around the commodity, the Russian output cuts have surpassed the pledged cut in October, as per the OPEC+ deal, according to the Russian Energy Minister Novak. Also, a drop in the US oil rigs count data also remains oil-supportive.
Despite the positives, the oil markets remain at the mercy of the US oil supply reports and broad market sentiment amid ongoing trade and geopolitical developments.
WTI Levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: A tough barrier remains around 0.6800
AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by50 bps.
EUR/USD still targets the 2024 peaks around 1.1200
EUR/USD added to Tuesday’s losses after the post-FOMC rebound in the US Dollar prompted the pair to give away earlier gains to three-week highs in the 1.1185-1.1190 band.
Gold surrenders gains and drops to weekly lows near $2,550
Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.
Ethereum could rally to $2,817 following Fed's 50 bps rate cut
Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.
UK CPI set to grow at stable 2.2% in August ahead of BoE meeting
The United Kingdom Office for National Statistics will release August Consumer Price Index figures on Wednesday. Inflation, as measured by the CPI, is one of the main factors on which the Bank of England bases its monetary policy decision, meaning the data is considered a major mover of the Pound Sterling.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.