WTI sellers attack $43.00 amid receding fears of hurricane Laura, strong US dollar

• WTI stays on the back for the second day despite the latest bounce off $42.94.
• Hurricane Laura made landfall in Louisiana and left the Gulf of Mexico mostly safe.
• US dollar snaps two-day losing streak after Fed Chair Powell’s power play.
• Baker Hughes rig counts, second-tier data from the US can offer short-term direction.

WTI seesaws around $43.00 with mild losses of 0.15% during Friday’s Asian session. The energy benchmark recently dropped as the US hurricane Laura spared the Persian Gulf.

Also negatively affecting the energy prices is the broad US dollar strength after Federal Reserve Chairman Jerome Powell favored Average Inflation Targeting (AIT) and cited a bit longer life of the easy money policies. It’s worth mentioning that the Fed boss also feared prolonged weakness of inflation and employment numbers due to the coronavirus (COVID-19), which in turn suggests weak energy demand and exerts downside pressure on the black gold.

Elsewhere, the US-China tussle and uncertainty concerning the American stimulus package join COVID-19 woes to count as extra reasons for the oil benchmark’s latest weakness.

On the contrary, upbeat market sentiment, depleting inventories and global policymakers’ production cuts are playing their roles to keep the buyers hopeful. Furthermore, the US dollar index (DXY) is still taking not out of the bears’ jaws and the same suggests the commodity’s upside.

While the mixed catalysts fail to entertain oil traders, today’s Baker Hughes US Oil Rig Count, prior 183, may offer intermediate moves. Also, the US Michigan Consumer Sentiment and Chicago Purchasing Managers’ Index could entertain the market players as well.

Technical analysis

Unless defying Wednesday’s Doji formation, with a sustained break above $44.00, the quote’s further weakness to the monthly support line near $42.25 can’t be ruled out.