WTI (oil futures on NYMEX) kicked-off the week on a negative note and remained on the back foot, as the sentiment was dented by a rise in the US rigs count while a shutdown of a large crude distillation unit in the US state of Illinois fuelled crude demand concerns.
The Baker Hughes oilfield services data showed on Friday that the US energy firms added seven oil rigs in the week to February 8, bringing the total count to 854, pointing to a further rise in US crude production.
However, over the last hour, the black gold is seen making some minor recovery attempts on the back of an improvement in the appetite for the risk assets such as oil, equities etc, as the European traders remain optimistic over the progress on the US-China trade front. The US delegation has already arrived in Beijing today for pre-negotiations ahead of the key meeting on the trade talks on February, 14th and 15th.
Looking ahead, markets eagerly await the releases of the US crude supplies report due out on Tuesday and Wednesday for further trading impetus for the oil markets. Meanwhile, the developments surrounding the US-China trade talks will continue to play a pivotal in the oil price-action. Note that China is the world’s second-biggest oil consumer.