WTI below $68.00 as traders await US NFP report
US West Texas Intermediate (WTI) crude oil prices remained under selling pressure for the third straight day on Friday and traded near the lower end of the weekly range, around the $67.80 region during the Asian session.
The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, on Thursday delayed a planned supply increase by three months to April and extended a full halt to cuts by one year to the end of 2026. The announcements indicated that the cartel is concerned about a potential supply glut and slowdown in global demand, especially in China – the world’s largest oil importer. This, in turn, is seen as a major factor weighing on the black liquid.
Meanwhile, the worsening Russia-Ukraine conflict and rising tensions in the Middle East keep geopolitical risks top of mind. Further, signs of resilience in the US economy, coupled with hopes that US President-elect Donald Trump’s expansionary policies will boost fuel demand, could act as a tailwind for Crude Oil prices.
Traders may also refrain from placing aggressive directional bets and opt to wait for the release of the key US Nonfarm Payrolls (NFP) report.
Source: FXStreet