WTI consolidates Thursday’s slide below $71 mark
- WTI sellers take a breather after the two-day heavy sell-off.
- DXY on track for the best week in nine months.
- The downside to be capped by upbeat oil demand outlook.
WTI (futures on Nymex) is wavering in a narrow range on the $70 level so far this Friday, having faced rejection at the $71 threshold.
At the time of writing, the US oil posts small losses near 70.69, looking to record the third straight weekly rise.
The black gold extends its corrective downside from two-and-a-half year highs of $72.99, although strengthening demand outlook for oil is likely to keep the pullback short-lived.
Meanwhile, the persistent US dollar’s strength after the Fed turned hawkish and signalld sooner-than-expected rate hikes, keeping the upside attempted limited in the USD-sensitive oil. The dollar is set to record the best week in nine months, currently holding near two-month highs.
Further, progress in the nuclear talks between Iran and the US also undermines the sentiment around oil. Earlier this week, Iran announced that it has reached a broad agreement with the US over the lifting of the energy sanctions.