WTI: Drops modestly on Friday, up 2% for the week

• WTI consolidates around $70.00 a barrel, holding a bullish tone but limited. 
• Crude oil prices flat on Friday, WTI up 2% over the week.

WTI (oil futures on NYMEX) moved sideways during the US session around the $70.00 area. It bottomed at $69.62, slightly above Thursday’s lows affected by concerns regarding the trade war and jitter about emerging markets. On a weekly basis, it was still headed toward a 2% gain supported by US sanctions to Iran and output expectations. 

Trump’s comments regarding trade limited the upside in crude oil prices yesterday and triggered a correction that continued on Friday. US rig count showed on Friday the first gain in 3 weeks. The Baker rig count report came in at 862, an increase of 2 from last week level. 

On Thursday, WTI peaked at $70.25, the highest level since late July and then pulled back finding support above $69.60. It is about to end the week moving in a range between $70.10 and $69.75, consolidating a weekly gain of 2%. 

Week ahead

On Monday, volume is likely to remain limited as US and Canada celebrate a public holiday. The Bloomberg inventory forecast report is due on Tuesday. The weekly API report on Wednesday and the EIA on Thursday; both postponed one day because of Monday’s holiday. On Friday the US official employment report will be released and also the Baker-Hughes rig count report.