WTI rises 2% above $ 55.50 as recession fears ebb, US rigs data eyed
- Oil cheers risk recovery, as better US data offset recession woes.
- Swelling US crude inventories, US-China trade anxiety to cap upside?
- Markets await fresh US Rigs Count data for next direction.
WTI (futures on Nymex) is seen building on its Thursday’s recovery, now extending gains beyond the 55 handle, as oil traders benefit from an improvement in the risk sentiment amid receding US recession fears and rallying Treasury yields.
Further, expectations the OPEC+ will continue its efforts to balance the market and support the prices, add to the bullish moves in the black gold, as the bulls gear up for a test of 57 levels once again amid ongoing geopolitical concerns between the UK and Iran over the tanker incident.
Will it sustain the upside ahead of US data?
Despite the bullish momentum, the unexpected build in the US crude stockpiles, as shown by the Energy Information Administration (EIA) on Wednesday, combined with oil demand growth concerns amid ongoing US-China trade spat could keep the upside in check.
The immediate focus now shifts towards the US Consumer Sentiment Index and Baker Hughes Oil Rigs Count data due later in the NA session for a fresh trading impetus.
WTI Levels to watch
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.
