WTI cautious near $ 50.50 on potential Gulf of Mexico storm

WTI (US oil futures on NYMEX) is stuck in a tight range above the midpoint of 50 handle, as traders remain in a wait and see mode ahead of the US rigs count and NFP data, while the latest reports of another tropical storm heading for the Gulf of Mexico, also keep the oil markets cautious.

Moreover, markets remain wary on potential US sanctions against Iran, with the Danske Bank Head of FI Research, Arne Rasmussen, noting: “In terms of oil markets, another US official yesterday spoke out against pulling out of the Iran nuclear deal, which should further dampen concerns in the oil market that sanctions could hit Iran’s oil exports again”.

However, the sentiment around the black gold remains somewhat buoyed amid expectations of an extension to the OPEC output cut deal, especially after King Salman of Saudi Arabia met the Russian President Vladimir Putin in Moscow on Thursday, to discuss output cuts extension.

Attention now turns towards the US drilling activity report and employment numbers for the next direction in the USD-sensitive oil. At the time of writing, WTI drops -0.30% to $ 50.65, while Brent steadies just ahead of $ 57 mark.