Prices for West Texas Intermediate (WTI) crude oil remain in the middle of a three-day range.
Prices are supported by hopes for the resumption of trade negotiations between the U.S. and China, raising expectations for strong fuel demand in the world's two largest economies. Specifically, U.S. President Donald Trump and Chinese President Xi Jinping agreed on Thursday to arrange a meeting between officials to continue dialogue on resolving the trade conflict.
Additional support comes from supply disruptions in Canada due to wildfires, as well as ongoing geopolitical risks associated with the Russia-Ukraine conflict and tensions in the Middle East. Furthermore, underlying bearish sentiment toward the U.S. dollar favors dollar-denominated commodities, including oil.
Nevertheless, it is advisable to avoid opening new positions ahead of the Non-Farm Payrolls (NFP) report — the important monthly U.S. employment data — which will be released later today during the North American session. This report will play a key role in shaping expectations regarding future Federal Reserve monetary policy and, consequently, demand for the U.S. dollar.
Moreover, oscillators on the daily chart are mixed, indicating market uncertainty at least until today's NFP release.
