Demand Hopes Continue To Boost Crude Oil Prices, COT Data In Focus

Crude prices have maintained a firm tone during the past 24 hours with further optimism surrounding the outlook for global growth boosting confidence in increased demand for oil.

Oil maintained a firm tone during New York trading on Thursday with WTI breaking above the $50.00 p/b level with a one-month high around $50.40.

Overall confidence in the global growth outlook remained firm which helped underpin confidence in the demand for oil.

There was also further speculation that OPEC production cuts could be extended for at least 3 months beyond the end of March 2018.

Oil prices dipped lower following news of the latest North Korean missile launch, although there was a measured response from currency markets which helped limit the reaction in energy markets.

There was a firm tone in Europe on Friday with WTI trading close to the $50.0 p/b level while Brent traded around $55.60.

The latest Baker Hughes data will be released after the Friday close with further uncertainty whether damage from hurricanes Harvey and Irma will have curbed the number of oil rigs in operation.

The latest COT positioning data will also be monitored closely late in the New York session with potentially stronger foundations for the latest rally in prices if there has been a substantial decline in long positions.

WTI Oil Price 4-Hour Chart

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Tim is a contributing author to EconomicCalendar.com. He is an economist and has been involved in financial markets for over 20 years as an analyst. He specialises in global economic trends, macro policy and central banks. Extensive knowledge, experience and data mining is used to anticipate trends in equities, bonds and forex with a contrarian slant. He is a graduate of the University of York with a degree in Economics/Econometrics.