- WTI prices rebound to $70.85 after hitting the the six-month lows.
- Saudi Arabia and Russia called on all OPEC+ members to join an agreement on production cuts for the stability of global oil markets.
- China’s Crude oil Imports declined 9% year on year in November.
- Oil traders await the US Nonfarm Payrolls report on Friday.
Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $70.85 on Friday. WTI bounces off the six-month lows as Russia and Saudi Arabia asked the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) members to adhere to production output cuts.
On Thursday, Saudi Arabia and Russia, the world's two largest oil exporters, called on all OPEC+ members to join an agreement on production cuts for the stability of global oil markets. That being said, the positive development surrounding the OPEC+ output cut might lift the WTI prices.
On the other hand, several recent economic indicators have revealed that China's economic recovery is sluggish, which exerts some selling pressure on WTI prices. China’s Crude oil Imports declined 9% year on year in November due to high stockpile levels, negative economic data, and slower orders from independent refiners weakened demand.
Additionally, one of the key factors for the drop in WTI prices is the global economic slowdown and recessionary worries. According to the International Monetary Fund, it forecasts global growth of 3.0% in 2023 and 2.7% in 2024, both of which are lower than the 3.0% forecast in July.
Moving on, oil traders will closely watch the US Nonfarm Payrolls report on Friday. Also, the Unemployment Rate and Average Hourly Earnings for December will be released later in the day. These events could significantly impact the USD-denominated WTI price. Oil traders will take cues from the data and find trading opportunities around WTI prices.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.