- Hurricane Laura passes through the US without much damage.
- Broad US dollar sell-off keeping Oil’s downside limited.
- WTI struggles to sustain above the 43 level ahead of US rigs data.
WTI (futures on Nymex) consolidates the sell-off from five-month highs of 43.77 reached on Wednesday, as sellers continue to lurk above the 43 mark.
So far this Friday, the US oil fluctuated between gains and losses, now trading with modest losses but remains on track to book the fourth straight weekly rise.
The dampened sentiment around the black gold can be mainly attributed to Hurricane Laura turning out to be a non-event. The storm passed through the centre of the US oil industry in Louisiana and Texas with virtually no impact on the refineries.
Further, reports that the Port of Houston, the top US crude oil export hub, was in the process of reopening to the commercial shipping, also added to the weight on the commodity.
However, the buyers remain hopeful amid notable US dollar weakness seen against its major rivals. The greenback bears the brunt of the Fed Chair Powell’s new strategy.
Further, the USD/JPY sell-off amid Japan’s political uncertainty also exacerbated pain in the buck. A weaker greenback makes the USD-denominated oil cheaper for foreign buyers.
Looking ahead, the oil traders will take cues from the US personal spending and consumer sentiment data ahead of the Baker Hughes drilling activity report.
WTI technical levels to watch
“Bullish MACD and repeated bounces off a multi-day-old support line raise bars for the sellers’ entry. As a result, the energy benchmark is likely to remain dismal unless breaking the area between $41.80 and $43.60, comprising the key EMA and the mentioned support line respectively,” Anil Panchal, FXStreet’s Analyst explains.
WTI additional levels
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