WTI struggles near weekly low, below $68.00 mark as traders await US NFP report

• WTI drifts lower for the third straight day despite OPEC+ decision to delay production rise. 

• Concerns about a slowing demand in China overshadow geopolitical risks and exert pressure.

• Traders now look to the US NFP report, which will drive the USD and provide a fresh impetus.

West Texas Intermediate (WTI) US Crude Oil prices remain under some selling pressure for the third consecutive day on Friday and trade near the lower end of the weekly range, around the $67.80 region during the Asian session.

The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, on Thursday, postponed planned supply increases by three months until April and extended the full unwinding of cuts by a year until the end of 2026. The announcement suggested that the cartel is worried about a potential supply glut and a slowdown in global demand, especially in China – the world's top oil importer. This, in turn, is seen as a key factor weighing on the black liquid. 

Meanwhile, the worsening Russia-Ukraine conflict and increasing tensions in the Middle East keep geopolitical risks premium in play. Furthermore, signs of US economic resilience, along with hopes that US President-elect Donald Trump's expansionary policies will boost fuel demand, could act as a tailwind for Crude Oil prices. Traders might also refrain from placing aggressive directional bets and opt to wait for the release of the key US Nonfarm Payrolls (NFP) report.

The closely watched US jobs data will play a key role in influencing the interest rate outlook in the US, which, in turn, will drive the US Dollar (USD) demand and provide some meaningful impetus to the commodity. Meanwhile, the lack of buying and the aforementioned fundamental backdrop favors bearish traders. This, in turn, suggests that any attempted recovery in Crude Oil prices could be seen as a selling opportunity and runs the risk of fizzling out rather quickly.