WTI Crude Holds Steady Above $62.00, Eyes NFP for Next Market Catalyst

WTI Crude Holds Steady Above $62.00, Eyes NFP for Next Market Catalyst

West Texas Intermediate (WTI) crude oil prices are holding firm in the mid-$62.00s during early Friday trading, consolidating modest gains while awaiting the upcoming US Nonfarm Payrolls (NFP) report for further momentum. Despite a lack of intraday direction, WTI is poised to register its first weekly gain in three weeks.

Oil Supported by Trade Optimism and Supply Disruptions

Expectations for renewed US-China trade negotiations are fueling hopes of stronger global fuel demand, particularly from the world’s two largest economies. After a Thursday call between US President Donald Trump and Chinese President Xi Jinping, both sides signaled willingness to resume talks to end the long-standing trade war.

These developments have helped lift sentiment in the energy markets, with traders betting on increased industrial activity and cross-border demand.

Canadian Wildfires Add to Supply Pressure

Another factor underpinning crude prices is the disruption in Canadian oil output due to widespread wildfires, which are threatening infrastructure and reducing production capacity. This adds to existing geopolitical supply risks, including the ongoing Russia-Ukraine conflict and tensions in the Middle East, helping to maintain a floor under oil prices.

Bearish USD Boosts Oil Appeal

Crude oil, priced in US Dollars, is also benefiting from a broadly weaker USD. A softening Greenback increases the appeal of USD-denominated commodities for foreign buyers, supporting oil prices even amid a sideways trading range.

Investors are closely watching the NFP jobs data, expected later Friday, which could influence Federal Reserve policy expectations and, by extension, the USD's direction.

WTI Technical Outlook

• Immediate resistance: $63.20
• Support level: $61.70
• A breakout from the $62.00–$63.00 range could offer the next leg for short-term traders, depending on the NFP outcome and geopolitical developments.

Outlook: Cautious Optimism with Eyes on Data

If Friday’s NFP report disappoints, a further dip in the USD could lift crude prices beyond the current range. However, stronger-than-expected job numbers might revive USD strength and weigh on oil’s bullish attempts.

Still, with improved trade sentiment and supply disruptions in play, WTI crude remains supported heading into the weekend.

Related Reads on Tredu:

• How NFP Data Impacts Oil and Commodities
• WTI vs. Brent: What’s the Difference for Traders?
• Trade Wars and Oil Prices: What You Need to Know