August Nymex WTI prices have modestly recovered Friday after suffering their biggest decline this year during Thursday’s ruthless sell off. August futures posted gains of just over 1% after yesterday’s slide that saw prices collapse by 4%. WTI prices initially extended their losses to print intra-day lows of $77.56 a barrel, before recovering some ground to rally back to $78.83. Price action was extremely choppy early on in the session and began to stabilise mid-morning as markets in general put themselves in consolidation mode ahead of the weekend. WTI prices have been underpinned by some buying on dips after yesterday’s sharp decline and also by the news that a swath of rain and thunderstorms across the Caribbean from Mexico to southern Florida had a 70% probability of becoming a tropical storm within the next 48 hours, according to the National Hurricane Center in Miami. The weather system may spread into the Gulf, threatening disruptions to oil and gas operations in the region. Market sentiment in WTI remains fragile as global growth concerns continue to hamper risk assets.
EasyForexNews Research Team