WTI: Modestly flat around $59.00, all eyes on G20, geopolitics
- WTI buyers wait for an actual deal between the US and China before portraying upbeat sentiment backed by US-Iran geopolitics, inventory draw.
- Baker Hughes US Oil Rig Count seems the only energy data on the cards.
Energy traders seem on a wait and watch mode as WTI offers less momentum near $59.30 during the early Asian session on Friday.
With the world’s two biggest economies ready to break the deadlock over trade chat at the sidelines of the on-going global leaders’ meet in Japan, the G20 becomes the center of the market attention off-late.
Adding to the jitters for oil traders is Russian President Vladimir Putin’s recent statement that they will decide on cooperating with the Organization of the Petroleum Exporting Countries (OPEC) over extending the supply glut in upcoming days.
Furthermore, Iran holds its resentment against the US and to some other major economies including the Eurozone. As per the latest comments from the Iranian official, the Arab country wants a waiver of latest sanctions from the US in order to sell its oil abroad before readying to talk with the US and/or agreeing over any ceasefire.
It should also be noted that the US crude oil stockpiles data from the American Petroleum Institute (API) and the Energy Information Administration (EIA) remained upbeat to the prices.
Despite the aforementioned price-positive catalysts the black gold holds its fire under check as bulls prefer waiting for the actual outcome of the US and Chinese Presidents’ meeting. Even if the US hasn’t put any preconditions, the Wall Street Journal reports that China aims for protecting Huawei, the same might put the talks in danger.
On the economic front, a weekly release of Baker Hughes US Oil Rig Counts will be watched for fresh impulse. The private count increased to 789 during latest readouts.
Technical Analysis
The oil benchmark should provide a clear break of $60.00 round-figure in order to justify its strength above the 200-day exponential moving average (200-D EMA) and aim for May 13 low around $60.63, $61.00 during further upside.
Alternatively, a daily closing below $59.00 comprising 200-D EMA can fetch prices to $57.30.