WTI Crude Oil Trading

1. Oil producers voice willingness to balance the oil market.
2. Lack of headlines surrounding US-China trade conflict supports oil's recovery.
3. China reports a wider-than-expected trade surplus in July.

The selling pressure surrounding crude oil eased a little on Thursday and allowed the barrel of West Texas Intermediate to erase a small portion of this week's losses. After dropping to its lowest level since early January at $50.50, the WTI rose toward the $53 handle but met resistance there. As of writing, the black gold was posting small daily gains at $52.30.
The data from China on Thursday showed that the trade surplus in July came in at $45.06 billion to beat the market expectation of $40 billion and eased concerns over a weak demand outlook. Additionally, the lack of fresh headlines surrounding the US-China trade conflict paved the way for crude oil to stage a technical correction.

Major producers commit to keeping oil market in balance
Earlier in the day, an official for Saudi Arabia's oil ministry argued that recent concerns about oil demand growth were overplayed. "Oil market fundamentals are good, especially on the supply side due to the strong commitment of OPEC+ with supply cuts and the lower-than-expected US output growth outlook," the official said.

Similarly, the United Arab Emirates' (UAE) energy minister Suhail al-Mazrouei said that the UAE will support actions to balance the oil market and added that they were confident that their OPEC and non-OPEC partners will take similar measures, providing support to crude oil rebound

1. IEA: Iran Oil Production Fell By 50,000 BPD In July To 2.23 Mln BPD, Lowest Since 1980s Iran Oil Exports Fell By 130,000 BPD In July To 400,000 BPD
2. IEA: OECD Oil Stocks Rose By 31.8 Mln Barrels In June To 2.961 Bln Barrels, 66.9 Mln Barrels Above Five-Year Average
3. IEA Sees Demand For OPEC Crude Rising In Third Quarter Of 2019 To 30.6 Mln BPD, 940,000 BPD More Than It Is Pumping
4. IEA: Non-OPEC Supply Rose 1.4 Mln BPD Year-On-Year In July, Set To Grow By 1.9 Mln BPD In 2019 And 2.2 Mln BPD In 2020
5. IEA: Global Oil Supply Held Steady In July Above 100 Mln BPD, But Fell Below Year-Earlier Levels For First Time Since Nov 2017
6. IEA: Global Oil Demand From January To May Rose 520,000 BPD, The Lowest Increase For That Period Since 2008
7. IEA: Global Oil Demand Fell 160,000 BPD Year-On-Year In May, The Second Annual Fall In 2019 OECD Oil Demand Has Fallen For Three Quarters In A Row For The First Time Since 2014
8. IEA Lowers 2019 Oil Demand Growth Estimate By 100,000 Bpd To 1.1 Mln Bpd And 2020 Estimate By 50,000 Bpd To 1.3 Mln Bpd
9. IEA Cites Oil Outlook Fragile After Weakest Patch Since 2008

1. Oil re-attempts $ 53 mark on USD weakness, hopes of more OPEC cuts.
2. Will WTI regain 53.00 amid US-China trade woes, bearish IEA forecast?
3. All eyes on US Rigs Count data for fresh direction on oil.

WTI (futures on Nymex) is seen making another attempt to regain the 53 handle in the European session this Friday, having found some support near 52.40 region.

IEA warns oil demand growth so far in 2019 lowest since 2008

The black gold looks to extend the previous recovery from seven-month lows, as the sentiment remains buoyed by broad-based US dollar weakness and expectations that the OPEC+ producers could resort to additional oil output cuts. This comes after Saudi Arabia, OPEC’s No.1 oil producer, called other producers to discuss the recent slide in crude prices.

Meanwhile, the US dollar remains on the back foot across its main competitors amid dovish Fed expectations and falling Treasury yields, as markets continue to weigh in the risks of a US economic recession. A weaker greenback makes the USD-denominated oil cheaper for the holders in foreign currencies.

Looking ahead, it remains to be seen whether the prices can yield a sustained break above the 53 handle, as lingering US-China trade worries continue to dent the oil demand growth outlook. Adding to the demand concerns, the International Energy Agency, in its latest monthly report, slashed its global oil demand growth forecasts for this year and the next.

Furthermore, the downside risks loom amid swelling US crude inventories, as the focus now shifts towards the US Baker Hughes Oil Rigs Count data due on the cards later today at 1700 GMT.