West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices hold steady since last week’s break above $50 a barrel as investors weighed the prospects of new financial aid as well as disappointing U.S. jobs data.
U.S. President-elect Joe Biden said the jobs report shows Americans needed more immediate relief and that acting now would help the economy even with deficit financing, including the US$2,000 stimulus cheques.
More details will follow in a formal announcement on Thursday, six days before he is scheduled to take office.
Earlier last week, Saudi Arabia, the world’s biggest oil exporter, said it would cut output by an additional 1 million barrels per day (bpd) in February and March.
According to data released by the energy company, Baker Hughes on Friday said the oil drilling rigs count in the U.S. rose for a seventh straight week, increased by 8 to 275 rigs for the week to January 8.
Viewing the technical aspects, while the market bulls protect the $49.40 support area, the upside challenge is likely to continue this week and look to the resistance of $54.30-80. Reassess from there.