- Hurricane Laura crosses the United States without too much damage.
- Massive sale of the US dollar limiting the fall in oil.
- WTI struggles to hold above level 43 ahead of US platforms data.
WTI (Nymex Futures) consolidates selling after five-month highs of 43.77 hit Wednesday, as sellers continue to hide above the 43 mark.
So far this Friday, US oil has fluctuated between gains and losses, now trading with modest losses, but remains on track to record the fourth consecutive weekly rise.
The muted sentiment around black gold can be mainly attributed to the fact that Hurricane Laura turned out to be a non-event. The storm passed through the center of the US oil industry in Louisiana and Texas with virtually no impact on refineries.
In addition, reports that the Port of Houston, the main US crude oil export hub, was reopening to commercial shipping, which also added to the weight on the cargo.
However, buyers remain bullish amid noticeable weakness in the US dollar against its main rivals. The greenback carries the weight of the new strategy of the president of the Fed Powell.
In addition, the USD / JPY sell off amid political uncertainty in Japan also exacerbated the pain in the dollar. A weaker greenback makes oil denominated in USD cheaper for foreign buyers.
Looking ahead, oil traders will be guided by data on personal spending and consumer sentiment in the United States ahead of Baker Hughes’ report on drilling activity.
WTI technical levels to watch
The bullish MACD and repeated rebounds on a multi-day old support line raise the bars for seller entry. As a result, the energy benchmark is likely to remain dismal unless it breaks the zone between $ 41.80 and $ 43.60, comprising the key EMA and the mentioned support line respectively, ”says Anil Panchal, analyst at FXStreet .