WTI consolidates recent gains amid fresh challenges to risk-tone
- WTI fails to extend the recovery gains.
- US President Trump reiterates call for Saudi-Russia pact on an oil production cut.
- Wuhan’s Chief warns over coronavirus resurgence risk, Washington Governor extends stay-at-home order till May 04.
- US data, virus headlines and Trump’s contribution to the price moves will be important to watch.
Even if US President Donald Trump reiterated his calls for oil production cuts, WTI remains under pressure around $23.75 amid the Asian session on Friday. The black gold fails to cheer the upbeat signals from the US leader amid risk reset.
US President Trump said that he hopes Russia, Saudi Arabia will reach a deal to cut production by as many as 15 million barrels per day (bpd) soon. The US leader also mentioned that he did not make concessions with Saudi Arabia and Russia in calls about oil while also turned down US domestic production cut. However, oil traders seem less convinced of the Republican leaders’ updates after the Russian spokesperson defied such a move the previous day.
Elsewhere, Communist Party Secretary of China's Wuhan says the risk of coronavirus resurgence in the city still high while Washington Governor announced an extension of statewide lockdown until May 04.
Amid all this, the market’s risk-tone remains a bit heavier with the US Treasury yields bucking the previous day’s recovery while stocks in Asia flash mixed signals.
Moving on, the US President’s meeting with the oil industry leaders will be the key to watch whereas US ISM Non-Manufacturing PMI, NFP and Baker Huges Oil Rig Count will decorate the economic calendar.
Technical analysis
March 19/20 high surrounding $28.00 becomes the immediate upside barrier while a downside break below $20.00 could renew bearish sentiment.