WTI recovers towards $ 62 amid risk-on, US data in focus

• Dragged down by swelling US inventories, record high US production.
• Focus shifts to US payrolls and oil rigs count d

WTI (futures on Comex) is seen reversing a dip to 61.30 lows, as the bulls were rescued by an improved sentiment towards the risk/ higher yielding assets following the release of upbeat Eurozone and UK macro data.

Despite the recovery to the 61.80 supply zone, the barrel of WTI remains better offered, as the sentiment remains dampened by surging US output and inventory levels.   

As Reuters reports, “U.S. crude stockpiles last week rose to their highest since September 2017, jumping by 9.9 million barrels to 470.6 barrels, as production set a record high of 12.3 million barrels per day (bpd), while refining rates fell.”

The looming concerns over the record high US supplies negate the optimism fuelled by the hopes of tighter global markets, in the wake of the US sanctions on Iran’s oil and Venezuelan political crisis.

Looking ahead, the US NFP data and Bakers Hughes oil rigs count data will influence the oil price-action, as markets digest the latest Saudi Arabian report about a potential rise in output next month.

WTI Technical Levels