WTI crude oil remains sidelined at around $87.80, after refreshing the weekly high, amid mixed concerns over the supply and demand of the black gold. Also challenging the commodity prices could be the market’s cautious mood ahead of the key US inflation data, as well as the weekly industry report of the oil inventories.
“Oil output in the Permian Basin in Texas and New Mexico, the biggest U.S. shale oil basin, is due to rise 66,000 barrels per day (bpd) to a record 5.413 million bpd in October, the U.S. Energy Information Administration (EIA) said in its productivity report on Monday,” mentioned Reuters. It should be noted that the US halted further increase in the Strategic Petroleum Reserve (SPR) release during the last week, which in turn signaled a notable improvement in the supply situation. Even so, Reuters quotes Energy Secretary Jennifer Granholm as saying, “The Biden administration is weighing the need for further SPR releases after the current program ends in October.”
On the other hand, Reuters quotes the US Department of Energy (DOE) data to mention that the US emergency oil stocks fell to the lowest level since October 1984, declining 8.4 million barrels to 434.1 million barrels in the week ended September 9. On the same line could the chatters surrounding the European Union’s embargo on Russian oil, as well as the Western leaders’ oil price cap on Moscow’s energy exports.
Elsewhere, uncertainty surrounding the US-Iran oil deal and the likely retaliation of Russia, after retreating from some parts of Ukraine, join the likely increase in China’s stimulus to also underpin the oil’s upside move.
It should be noted that the risk-on mood and the US dollar weakness are on the same line that favors the oil buyers. That said, the US Dollar Index (DXY) printed a four-day downtrend to fall to the lowest levels in a fortnight, around 108.30 at the latest.
Moving on, US CPI for August becomes crucial after the latest softness in the price pressure. The forecasts suggest the headline number ease to -0.1% MoM versus 0.0% prior while the CPI ex Food & Energy is likely to remain unchanged at 0.3% MoM. Also important will be the American Petroleum Institute’s (API) Weekly Crude Oil Stock data, prior 3.645M.
WTI crude oil prices dribble between the 10-DMA and the 21-DMA, respectively around $86.20 and $89.00. However, the impending bull cross on the MACD and steady RSI (14) keeps buyers hopeful.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.