WTI wobbles at $62.20 with US NFP on horizon

West Texas Intermediate futures on NYMEX, trade sideways around $62.20 during European trading on Friday. The benchmark crude oil consolidates as investors await the US Nonfarm Payrolls (NFP) data for May.

Investors will pay close attention to the US official employment data as it will influence market speculation for the Federal Reserve monetary policy outlook. Signs of cooling labour demand would force traders to raise Fed dovish bets, a scenario that will be favourable for the oil price.

WTI remains well-supported as the comments from US President Donald Trump in a post on Truth. Social have indicated that trade negotiations with China will be smooth in the future. “The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both countries.” Trump wrote.

Meanwhile, Beijing has also confirmed that President Trump and Chinese President Xi Jinping held a phone call on Trump’s request to engage in discussions and reflect ongoing diplomatic communication amidst tensions, Xinhua news agency reported.

De-escalating trade tensions between China and the US is favourable for the oil price, given that China is the largest importer of oil in the world.

(Source: OANDA)