WTI reverses a dip to $ 61.80, US NFP, drilling data eyed

• Global economic slowdown concerns, rising US supplies weigh on oil.
• In search of fresh direction ahead of US NFP, rigs count data.

WTI (oil futures on NYMEX) trades modestly flat so far this Friday, consolidating Thursday’s sharp declines but keeps its range around the 62 handle heading into the US payrolls and rigs count data due later today.

The sentiment around the black gold remains undermined by surging US crude inventories and output levels while looming global economic slowdown concerns combined with a lack of fresh updates on the US-China trade progress also collaborates to the bearish momentum.

The latest Energy Information Administration (EIA) report showed that the US crude oil stocks increased by 7.2 million barrels in the week ending March 29 compared to analysts' estimate for a draw of 425K barrels. Meanwhile, the US crude oil production rose to a record 12.2 million bpd last week. Note that the Rising US supplies undermine the OPEC + efforts to prop up oil markets.

Further, a bout of profit-taking cannot be ruled after the prices rose to the highest levels in five months just shy of the 63 mark. Despite the subdued action, the commodity remains on track for its fifth straight weekly gain.

All eyes now remain on the key US NFP figures for fresh dollar trades that will eventually affect the USD-sensitive oil while the Baker Hughes rigs count data will also have a major bearing on the near-term price action.

WTI Technical Levels