In the face of a risk rebound, WTI’s recovery continues apace.
The US oil market is also supported by positive EIA stock statistics.
As the US currency strengthens, there is still a risk of covid worries.
WTI (futures on the New York Mercantile Exchange) is off the highs but still well above $73.50, as it attempts to extend its rebound from three-week lows of $70.76 well past the $74 barrier.
The black gold’s two-day rally follows a larger-than-expected fall in US weekly oil stocks, according to the Energy Information Administration (EIA) on Thursday. “US crude and gasoline stockpiles dropped, and gasoline demand hit its highest level since 2019, reflecting strengthening economic strength,” the EIA stated in its report.
Meanwhile, the recent rise in US oil prices can be attributed to a resurgence in risk sentiment. After seeing one of the worst selloffs this year amid rising concerns about a stalling global economic recovery, European equities enjoy a relief rebound as bargain hunters step in. The price of US oil is currently trading at $73.80, up 1.30 percent on the day, on its way to its first weekly drop in seven weeks.
However, it remains to be seen whether the price will maintain its gain with a comeback in Treasury rates throughout the curve, courtesy of a resurgent US dollar demand. Furthermore, oil traders watch Wall Street sentiment and US rigs data for new trading opportunities./n
