WTI pares back gains below $53 ahead of US drilling data
- Risk-on amid WHO’s confidence boosts oil prices.
- Crude Oil Futures: The negative view remains unchanged
- Next of relevance remains the US Rigs Count data.
WTI (oil futures on NYMEX) reverses half the Thursday’s recovery rally and surrenders the $53 mark in European session this Friday.
The black gold extended the overnight bounce in Asia and reached as high as $53.36, as the risk sentiment rebounded on the World Health Organization (WHO) confidence in China’s quick response in containing the coronavirus outbreak.
Further, the WHO Director-General also came out against travel and trade restrictions while declaring a global emergency over the spread. The relaxed tone by the body helped improve the market mood.
However, the bulls lacked vigor amid the rapid spreading virus internationally and as markets continue to assess its economic implications. Oil traders remain wary about the virus’s impact on the demand for oil and its products. Thus, keeping the upside attempts in check.
The sentiment around the barrel of WTI also remains weighed down by a bigger-than-expected rise in the US Crude Stocks data, reported by the Energy Information Administration (EIA) on Wednesday. The US crude stocks rose by more than seven times market expectations, gaining 3.5 million barrels in the week to Jan. 24, per EIA data.
In the day ahead, the coronavirus concerns will continue to drive the market sentiment while the commodity will take cues from the US Baker Hughes Oil Rigs Count data due at 1800 GMT.
WTI Technical levels to consider