WTI on the back-foot near $62 despite trade deal optimism, US NFP focus

• Energy buyers paid less attention to the trade deal optimism.
• US employment data and Baker Hughes rig count will be in limelight.

WTI is trading near $62.00 ahead of European open on Friday. The energy benchmark seems less responsive to positive signals concerning the trade deal between the US and China off-late. Investors are likely on a waiting mode ahead of the US February month employment details after the same disappointed markets during its earlier release.

China’s Vice Premier Liu He’s visit to Washington has been a major positive change for the US-China trade deal as leaders of both the economies have recently communicated optimism surrounding the progress and also upbeat about the result.

The crude oil benchmark earlier witnessed pullback from its 2019 high as a surprise increase in the US crude stocks change disappointed buyers. The Energy Information Administration (EIA) recently said that the US crude oil stocks increased 7.238 million barrels during the week ended on March 29 against -0.425 million forecast and +2.8000 expectations.

Having witnessed a sluggish inventory report, traders may concentrate on Friday’s Baker Hugh rig counts for the US. The weekly rig count data has been on a negative tone for the last 5 weeks.

Looking at the US employment details, Non-farm payrolls could reimburse previous losses by rising to 180K from 20K but no change is expected in average hourly earnings and unemployment rate levels of 3.4% and 3.8% respectively.

WTI Technical Analysis

A successful break of $63.00 is required for WTI to aim for June 2018 low near $63.80 whereas August 2018 lows near $64.90 - $65.00 could please buyers then after.

200-day simple moving average (SMA) figure of $61.80 could act as immediate support, a break of which can recall $60.00 on the chart.