- WTI nears $58.00 while concentrating on the US-China trade/political tension.
- Geopolitical problems in Iran seem to have less impact.
- Saudi Arabia’s likely resistance to production cuts make next week’s OPEC+ the key.
WTI drops to the intra-day low of $58.07 by the press time of early Friday in Asia. The energy benchmark seems to have negatively affected by the sluggish demand outlook due to the US-China tussle. Though, traders are more concerned for the next week’s meeting of major oil producers in Vienna.
Geopolitical tension concerning Iran can be considered as a counterforce to the latest tension between the United States (US) and China. Iran’s protests, even after turning softer, still give troubles to the policymakers and they blame the US for that, as per the UK Express.
On the contrary, China is likely to blacklist the writers of the Hong Kong Act, as per Global Times, in retaliation to the US President’s latest move. However, headlines are yet to turn negative for the phase-one deal among the world’s top two economies.
Moving on, Saudi Arabia’s Prince Abdulaziz bin Salman will host his first meeting of Organization of the Petroleum Exporting Countries (OPEC) and their allies including Russia, popularly known as OPEC+, during December 05/06 in Vienna. The oil leader has recently started arguing against the global production cuts while claiming to be the lone bearer of that burden. As a result, investors will keep a close eye on next week’s OPEC+ meeting for near-term oil moves.
Read: OPEC, OPEC and more OPEC will be what oil markets will be all about next week
There has been some chatter by the Goldman Sachs’ analysts about recovery in global and the US economies in 2020 while JP Morgan favored global growth rebound. However, none of this could please oil traders much ahead of the next week’s key event.
Technical Analysis
Monthly high surrounding $58.80 holds the key to late-September tops near $59.40 and then a consequent rise to $60.00. On the downside, $57.30 and $54.90 can offer the following supports if prices slip beneath $58.00.
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 tests fresh tops above 1.0870 on NFP
The selling bias in the US Dollar gathers extra pace on Friday after the US economy created fewer jobs than initially estimated in February, sending EUR/USD to the area of new highs around 1.0870.
GBP/USD hovers around recent highs above 1.2900
The continuation of the downward trend in the Greenback encourages GBP/USD to maintain the trade just above the 1.2900 mark following the release of US NFP in February.
Gold remains bid above $2,900 after US Payrolls
Gold prices manage to leave behind Thursday’s pullback and revisits the area of $2,920 per troy ounce in the wake of the publication of the US labour market report in February.
White House Crypto Summit could boost adoption across financial markets: Binance exec Rachel Conlan
US President Donald Trump signed an executive order for a Strategic Bitcoin Reserve on Friday, shifting industry leaders’ focus from regulation to adoption. Within just over six weeks of his term, the President is set to host the first Crypto Summit, hosting industry giants and executives from the ecosystem.
February CPI preview: The tariff winds start to blow
Consumer price inflation came out of the gate strong in 2025, but price growth looks to have cooled somewhat in February. We estimate headline CPI rose 0.25% and the core index advanced 0.27%. The moderation in the core index is likely to reflect some giveback in a handful of categories that soared in January.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.