WTI retreats from $54.00 mark, but sticks to daily gains

WTI crude oil edged higher on Friday, albeit struggled to build on to its move above $54.00/barrel mark and clawed back some of its gains to currently trade around $53.80 region.

Spot gained traction after Thursday's data from the Russian Energy Ministry showed the country’s production of oil dropped by around 100,000 bpd in January and supported optimism surrounding adherence to oil production cut agreement between OPEC and non-OPEC members. 

Meanwhile, geopolitical tensions between the US and Iran, with Trump administration expected to impose new sanctions on the later following its recent ballistic missile tests, also extended some support to the black gold.

However, a modest greenback recovery, with the key US Dollar Index recovering back above 100.00 psychological mark ahead of the keenly watched NFP data, was seen restricting further upside. Stronger greenback tends to dent demand for dollar-denominated commodities - like oil. Adding to this, growing domestic crude oil supplies coming from the US seems to be offsetting OPEC cartel's efforts to balance oil markets. 

Technical levels to watch

Immediate support is pegged near $53.55-50 region below which the commodity is likely to head back towards $53.00 handle, en-route $52.65-60 support area. On the upside, sustained momentum above $54.00 mark is likely to lift the commodity towards $54.35 resistance (yesterday's high), which if cleared has the potential to continue boosting it towards $55.00 psychological mark ahead of Jan. monthly highs resistance near $55.25 level.