WTI retreats towards $70.00 amid pre-NFP consolidation, OPEC+ concerns – by anilpanchal7 Oil WTI RiskAversion Commodities NFP
Softer US Dollar, risk-on mood and firmer China data allow Oil buyers to stay hopeful.US NFP, risk catalysts eyed for clear directions, USD moves are the key.crude oil fades upside momentum around $70.00 during early Friday in Asia, after rising the most in one month the previous day. In doing so, the Oil price portrays the typical pre-NFP positioning of the markets while also justifying the price-negative catalysts from the energy industry.
seesaws around 103.56 after a 0.65% daily fall marked on Thursday, the most in a month, to reverse from the highest levels since mid-March.Treasury bond yields also refreshed the weekly lows as the market’s pricing of the Fed rate hike dropped. Adding strength to the DXY could be mixed US data and receding hopes of a faster Fed rate hike, as well as firmer data from China and passage of the US debt ceiling agreement in the US House of Representatives.
Elsewhere, a surprise build in the weekly inventories reported by the US Energy Information Administration , 4.488M for the week ended on May 26, versus -1.386M expected and -12.456M prior, weigh on the Oil prices. On the same line are the concerns that the Organization of the Petroleum Exporting Countries and allies led by Russia, known as the OPEC+, are unlikely to deepen supply cuts at their ministerial meeting on Sunday despite a fall in oil prices toward $70 per barrel, four sources from the alliance told Reuters.Looking forward, developments surrounding the US bill to avoid default may entertain the Oil traders ahead of the US jobs report for May.
to ease to 190K from 253K prior while the Unemployment Rate is also expected to increase to 3.5% from 3.4%.Unless crossing a descending resistance line from April 12, around $72.65 by the press time, WTI remains off the buyer’s table.
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