WTI rebounds to test $ 55 mark, eyes on US data

• Resilient to broad USD rebound.
• Firming Asian demand supports.
• US NFP, rigs count data in focus.

WTI (oil futures on NYMEX) stalled its retreat just ahead of the daily pivot of $ 54.65, as the bulls regained control, sending the rates back to test the 55 handle.   

WTI: Upside remains capped by $ 55

The black gold edged higher this Friday and remains on track to book the fourth straight weekly rise, as the sentiment continues to remain underpinned by hopes of OPEC output cuts extension beyond March 2018.

Moreover, rising physical oil prices, reflected by Saudi Arabia raising the December official selling price (OSP) for its Arab Light grade for Asian customers, also lends support to the upside.

Furthermore, oil advances also on the back of strengthening physical Asian demand, especially after rising Chinese crude imports. It’s worth noting that China overtook the US as the world’s biggest crude importer.

Looking ahead, markets now await the US drilling activity report and employment data for fresh impetus on the prices. At the time of writing, WTI rises +0.54% to $ 54.86, while Brent gains +0.43% to $60.88.

WTI Technical Levels

Higher-side levels: 55.22 (10-month highs), $ 55.50 (psychological levels), $ 56.00 (round number)

Lower-side levels: 54.65 (daily pivot), 53.79 (10-DMA), 53.23 (classic S3)