WTI retreats from monthly tops, near $ 52.50

Oil futures on NYMEX is seen gradually retreating from fresh one-month tops reached in early Asia at $ 52.94 amid reports of the US missiles attack on Syria.

The US military action on the Syrian airbase stoked geo-political tensions and fuelled supply disruption concerns, pushing the black gold more-than 2% higher, before surrendering a part of the intraday gains, in response to the Syrian information minister’s comments.

Moreover, lack-luster trading seen in the US dollar versus its main competitors ahead of the key uS employment data, keeps the USD-sensitive oil underpinned. A weaker US dollar makes USD-denominated oil cheaper for the buyer in foreign currencies.

Focus now remains on the US rigs count data due to published by Bakers and Hughes oilfields service later in the NA session.

WTI technical levels 

A break above $ 52.94 (1-month top) could yield a test of $ 53.50/56 (psychological levels/ March 6 high) beyond which $ 54 (zero figure) could be tested. While a breach of $ 52.02 (100-DMA) would expose daily pivot at $ 51.43, below which downside opens up for a test of $ 50.61 (10-DMA).