WTI (oil futures on NYMEX) reversed course and returned to the red zone, now dropping nearly 2% to near 51.70 levels amid a broadly firmer US dollar and widespread risk-aversion, fuelled by mounting global economic growth concerns.
The disappointing US NFP report combined with the Eurozone Sentix Investor confidence numbers released recently added to the global growth concerns and weighed further on the European equity markets.
On Friday, the black gold rallied 4% after the OPEC announced to cut oil supply by 1.2 million barrels per day (bpd). Also, the shutdown of the 315,000-bpd El Sharara oilfield in Libya underpinned the sentiment around the barrel of WTI.
Looking ahead, the commodity will get influenced by the USD price-action and risk trends until the releases of the US weekly crude stockpiles data due tomorrow and on Wednesday.