WTI bounces-back to $ 57.50 on US-Iran war risks, US rigs data eyed

• Rising fears over a US attack on Iran offer a fresh lift to the bulls.
• Looks to retest 3-week highs of 57.77 ahead of US PMIs and rigs data.

Having reached fresh three-week highs at 57.77 in early Asia, WTI (futures on Nymex) corrected slightly to the 57 handle before the bulls fought back control in the European trades, sending the rates back towards the 57.50 region.

The latest leg up in the black gold can be mainly attributed to heightened fears of a US attack on Iran over the US drone shot down by Iran on Thursday that escalated the Middle East tensions and aggravated supply disruption concerns.

The latest reports cite that the US President Trump is prepared for an imminent attack on Iran, as the Islamic nation seems not very keen on peace talks with the US leader. US Pres. Trump warned overnight of an imminent attack on Iran

Moreover, the sentiment around the barrel of WTI remains underpinned by the increased expectations of OPEC output cuts extension beyond June while broad-based US dollar also continues to collaborate to the bullish momentum in the prices. A weaker greenback makes the USD-denominated oil cheaper for the holders in foreign currencies.

Furthermore, a bigger-than-expected drop in the US crude inventories also helps keep the buoyant tone intact around the commodity. According to the Energy Information Administration (EIA), the US crude stocks fell by 3.1 million barrels last week vs. expectations of a 1.1 million barrels decrease.

Markets keep a close watch on the development around the US-Iran conflict ahead of the US Markit flash manufacturing PMI data and Baker Hughes oil rigs count data due later today.

WTI Technical Levels