Oil trims early gains, retreats to $51.00 mark

Having tested sub-50.00 level in the previous session, WTI crude oil regained traction and jumped back above $51.00 mark during Asian session on Friday. 

News report that Kuwait, the fifth-largest producer in the OPEC cartel, is reducing its supply, more than it previously pledged, provided an initial boost for the black gold. Adding to this, a mild greenback retracement extended additional support and lifted the commodity to session high level of $51.26. Oil, however, trimmed early gains and is currently hovering around $51.00/barrel mark. 

Meanwhile, Wednesday's hawkish Fed outlook, projecting three interest-rate hikes in 2017, limited further corrective slide for the US Dollar and was seen hindering further up-move for dollar-denominated commodities, including oil.

Later during NY trading session, investors will focus on the US Baker Hughes oil rig count report.

Technical levels to watch

Immediate resistance on the upside is seen near $51.45-50 region, above which the commodity seems to immediately dart towards $52.00 mark ahead of its next major hurdle near $52.50 area. On the downside, weakness back below $50.80-75 immediate support is likely to drag the commodity back towards $50.00 psychological mark.