Quotes for energy resources WTI US Crude Oil Spot (WTI)

• WTI price received upward support as investors expect Israel to respond to Iran’s assault.
• Israeli Prime Minister Benjamin Netanyahu has called upon his war cabinet to formulate a response to Iran's direct attack on Israel.
• The crude Oil prices hold ground in the face of mixed Chinese data.

West Texas Intermediate (WTI) Oil price edges higher to near $85.30 per barrel during the Asian trading hours on Tuesday. The crude Oil prices receive upward support due to concerns about the escalating tensions between Israel and Iran, particularly in the wake of Iran's missile and drone attacks on Saturday.

Furthermore, Israeli Prime Minister Benjamin Netanyahu convened his war cabinet for the second time in less than 24 hours on Monday to assess how to respond to Iran's direct attack on Israel, according to Reuters. Additionally, Israel's military chief stated that his country would retaliate against the assault, with reports suggesting that they are targeting strategic sites in Iran.

Iran, as a significant member of the Organization of the Petroleum Exporting Countries (OPEC), produces over 3 million barrels of crude Oil per day. Any escalation of tensions between Israel and Iran could potentially trigger a broader conflict in the Middle East.

On the demand side, crude Oil prices appear to be holding steady in the face of mixed data released by the world's largest oil importer on Tuesday. China's Gross Domestic Product (GDP) for the first quarter of 2024 expanded by 1.6% quarter-on-quarter, surpassing the previous quarter's growth of 1.0%. Year-on-year GDP growth came at 5.3%, exceeding expectations of 5.0% and surpassing the 5.2% figure from the previous period. However, China's Industrial Production (YoY) in March increased by 4.5%, falling short of market expectations of 5.4% and the previous reading of 7.0%.

Meanwhile, according to an African industry official speaking to Reuters, the Organization of the Petroleum Exporting Countries and Russia (OPEC+) considers Namibia for potential membership, given its projected status as Africa's fourth-largest Oil producer by the next decade. The primary aim initially would be for Namibia to become a part of OPEC+'s Charter of Cooperation, a coalition focused on conducting ongoing discussions about energy market dynamics.

• WTI kicks off the new week on a subdued note and reacts little to Iran’s attack on Israel.
• Worries about cooling fuel demand turn out to be a key factor capping the black liquid.
• The risk of a further escalation of tensions in the Middle East to help limit the downside.

West Texas Intermediate (WTI) US crude Oil prices fail to lure buyers despite Iran's attack on Israel over the weekend and seesaws between tepid gains/minor losses during the Asian session on Monday. The commodity currently trades just below the $85.00/barrel mark, nearly unchanged for the day as traders now await Israel's response to the Iranian strike before placing fresh directional bets. 

Iran launched explosive drones and missiles at Israel late on Saturday in retaliation for a suspected Israeli attack on its consulate in Syria earlier this month. This marks the first attack on Israel from another country in more than three decades and raises the risk of a broader region conflict, which could affect Oil supply from the Middle East. Meanwhile, Israeli officials are in favor of retaliation, though the US has said that it will not take part in any offensive action against Iran. This, in turn, is seen as a key reason behind the muted market reaction and acts as a headwind for Crude Oil prices. 

The black liquid is further undermined by the fact that the International Energy Agency lowered the 2024 global oil demand growth forecast by 130,000 bpd to 1.2 million barrels per day (bpd) on Friday. This comes on top of the official US data published by the Energy Information Administration last week, which showed an unexpected build in gasoline inventories and pointed to signs of cooling in fuel demand. Furthermore, bets that the Federal Reserve (Fed) may delay cutting interest rates in the wake of still-sticky inflation could hamper economic activity and dent fuel consumption.

Nevertheless, the aforementioned mixed fundamental backdrop keeps traders on the sidelines and leads to subdued/range-bound price action on the first day of a new week. WTI Crude Oil prices, meanwhile, remain well within the striking distance of a multi-month peak, around the $87.10-$87.15 area touched on April 5, which should act as a key pivotal point. A sustained strength beyond will be seen as a fresh trigger for bullish traders and set the stage for an extension of the recent well-established uptrend witnessed over the past month or so.

• WTI drifts lower to $85.00 on Friday. 
• The higher-for-longer US rate narrative weighs on the black gold. 
• The fear of Middle East geopolitical tensions might cap the WTI’s downside for the time being. 

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $85.00 on Friday. The black gold edges lower on the day as the elevated inflation dampened the expectation for US interest rate cuts this year. Nonetheless, the escalating geopolitical tensions in the Middle East might cap the downside of WTI prices in the near term. 

The recent US inflation and employment reports indicated that the path of easing inflation remains extremely bumpy and the Federal Reserve (Fed) might need to delay the interest rate cuts. According to the FOMC minutes released on Wednesday, participants noted their uncertainty about the elevated high inflation and recent data had not increased their confidence that inflation was moving sustainably down to 2%.” Financial markets have priced in only two rate cuts this year, which will most likely start in September, per the CME FedWatch Tool. The higher-for-longer US rate narrative could exert some selling pressure on black gold as it translates to less demand for oil as the cost of storing crude increases. 

Additionally, WTI prices lose traction after the release of the EIA report. Crude oil stockpiles in the United States for the week ending April 5 increased by 5.841 million barrels from a build of 3.21 million barrels in the previous week. The market consensus estimated that stocks would rise by about 2.366 million barrels, according to the US Energy Information Administration report on Wednesday.

On the other hand, the fear of geopolitical risks in the Middle East might boost WTI prices. Israel and Hamas began a fresh round of negotiations in their more than six-month-old Gaza war this week, but those talks have yielded no agreement. Additionally, a potential Iranian strike on Israel for a suspected air strike on its embassy in Syria on April 1 is likely to cap the downside of WTI prices for the time being. 

• WTI struggles to attract any follow-through buying amid mixed fundamental cues.
• Concerns about the worsening Middle East act as a tailwind for the black liquid.
• Signs of cooling fuel demand might hold back bulls from placing aggressive bets.

West Texas Intermediate (WTI) US crude Oil prices struggle to capitalize on the previous day's goodish bounce from the $84.00 mark, or over a one-week low and oscillate in a narrow band during the Asian session on Thursday. The commodity currently trades around the $85.75-$85.80 region and remains well supported by concerns about the worsening Middle East crisis.

Ceasefire talks between Israel and Hamas have yielded no agreement. Adding to this, a possible Iranian retaliation over a suspected Israeli strike on its embassy in Syria raises the risk that the Israel-Hamas war could escalate across the Middle East, putting the Oil supply at risk and acting as a tailwind for the black liquid, though a substantial rise in US Crude inventories cap the upside.

Official data published by the Energy Information Administration showed an estimated US Oil inventory build of 5.8 million barrels for the week to April 5, much more market expectations and a build of 3.2 million barrels for the previous week. Adding to this, an unexpected build in gasoline inventories pointed to signs of cooling in fuel demand, which, in turn, keeps a lid on Crude Oil prices.

Furthermore, the hotter US consumer inflation figures released on Wednesday forced investors to push back their expectations for the first interest rate cut by the Federal Reserve (Fed) to September from June. This, in turn, is expected to hamper economic activity and further dent fuel consumption, warranting some caution before positioning for any further appreciating move for Crude Oil prices.

Moving ahead, traders now look to the US economic docket – featuring the release of the usual Weekly Initial Jobless Claims and the Producer Price Index (PPI). This, along with speeches by influential FOMC members, should drive the USD demand and provide some impetus to the US Dollar-denominated commodities, including Crude Oil prices.

• The Oil price consolidates near $85.00 ahead of the US Inflation data for March.
• US inflation data will provide cues about when the Fed could start reducing interest rates.
• Iran’s direct involvement in the war in Gaza and more Ukraine attacks on Russian oil refineries could tighten the oil supply further.

West Texas Intermediate (WTI), futures on NYMEX, remain supported near $85.00 ahead of the United States Consumer Price Index (CPI) data, which will be published at 12:30 GMT. The inflation data for march will influence market expectations for the Federal Reserve (Fed) pivoting to rate cuts in the June meeting.

The inflation data is expected to remain stubborn due to higher oil prices, rentals, and insurance costs and portfolio management fees.

The Oil price corrects after printing a fresh five-month high at $87.50. However, escalating tensions in the Middle East region keep the Oil demand intact. Israel’s proposal of ceasefire doesn’t meet various Hamas demands, but the latter has commented that it would study further and revert to mediators. Hamas wants Israel to withdraw its forces and allow Palestinians to return home, who were displaced due to war in Gaza.

Fears of Iran’s direct intervention in the Israel-Palestine war deepen as the Israeli army has announced that they are ready to invade Rafah, the last resort for Palestinians who have been displaced.

Iran’s entry from the front to war at Gaza will significantly disrupt the oil supply chain. Iran is the third largest oil producer of the OPEC, and its direct involvement in war will tighten the Oil market significantly, which will have a positive impact on the Oil price.

In the eastern region of Europe, Ukraine’s drone attacks on Russia’s oil infrastructure have also kept fears of oil supply shocks unabated.

• WTI extends its downside near $84.60 on Wednesday.
• The bigger-than-expected build in US crude inventories weighs on the black gold. 
• The uncertainty over Gaza ceasefire talks and ongoing Middle East geopolitical tensions might cap the downside of WTI. 

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $84.60 on Wednesday. The black gold trades in negative territory for the fourth consecutive day amid the US crude stock build and profit-taking ahead of the release of the US March Consumer Price Index (CPI) report and the FOMC Minutes, due later on Wednesday.

The recent US employment report last week has triggered speculation that the Federal Reserve (Fed) might delay interest rate cuts this year. Investors will closely watch the US CPI inflation data for March, as it could offer some insights about the inflation trajectory and the path of the Fed’s monetary policy. The firmer-than-expected outcome might lift the US Dollar (USD) and weigh on the USD-denominated WTI price.

Furthermore, the bigger-than-expected build in US crude inventories exerts some selling pressure on WTI prices. US crude oil inventories for the week ending April 5 increased by 3.034 million barrels from the previous week's decline of 2.286M million barrels. The market consensus estimated that stocks would rise by about 2.415 million barrels, according to the American Petroleum Institute (API) on Tuesday.

The leader of Iran's Revolutionary Guard navy said that the Strait of Hormuz might be closed if necessary. About a fifth of the volume of the world's total oil consumption passes through the strait every day. This, in turn, might trigger the fear of oil supply disruption and cap the downside of WTI prices. 

On Tuesday, Hamas stated that an Israeli proposal for a ceasefire in their war in Gaza did not match the conditions of Palestinian militant groups, but that it would consider the offer further. Oil traders will monitor the developments surrounding the geopolitical tensions in the Middle East. The ongoing tensions could raise concerns about a tight market. 

• WTI prices gain ground on failure of ceasefire talks between Israel and Hamas in Egypt.
• Israeli Prime Minister Benjamin Netanyahu declared Israel's intention to proceed with its plans to invade the Rafah enclave in Gaza, refraining from specifying a date.
• Mexico's Pemex could reduce Crude exports by at least 330,000 bpd in May.

West Texas Intermediate (WTI) oil price rebounds after a two-day decline, edging up to nearly $86.30 per barrel during Tuesday's European trading session. The surge in Crude oil prices followed the failure of the latest ceasefire negotiations between Israel and Hamas in Egypt on Monday.

Earlier discussions for a ceasefire had halted a multi-session rally, causing WTI to break its six-day winning streak. This was due to the anticipation that geopolitical tensions might ease. However, Israeli Prime Minister Benjamin Netanyahu announced on Monday that Israel intends to carry out its plans to invade the Rafah enclave in Gaza, without specifying a date. Additionally, a senior Hamas official stated that they have rejected the latest ceasefire proposal put forward by Israel during the talks in Cairo.

The ongoing conflict carries the heightened risk of drawing in other regional countries, notably Iran, a significant supporter of Hamas and the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC). An Iranian retaliation to the suspected Israeli attack on its consulate in Syria last week could potentially embroil the oil market in the conflict. However, Israel has not officially claimed responsibility for the attack.

Mexico's state energy company, Pemex, plans to reduce Crude exports by at least 330,000 barrels per day (bpd) in May. This decision will affect customers in the United States (US), Europe, and Asia, leading to a reduction in supply by a third. The move follows Pemex's directive to its trading arm, PMI Comercio Internacional, to withdraw 436,000 bpd of Maya, Isthmus, and Olmeca crudes this month. This decision aims to meet the needs of domestic refineries as Pemex aims for energy self-sufficiency.

• WTI prices gain momentum near $86.00 on Tuesday. 
• The ongoing Middle East tensions, a key region for oil production, might boost WTI prices. 
• The expectation that the Fed might delay interest rate cuts this year drags black gold lower. 

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $86.25 on Tuesday. The weaker US Dollar (USD) and the ongoing geopolitical tensions in the Middle East conflict raise concern about the crude supply disruption, boosting WTI prices near the six-month top.

On the weekend, Israel withdrew its forces from Khan Younis in southern Gaza, resulting in one of the lowest military levels since the conflict with Hamas started in October. WTI prices trimmed gains following this headline. However, the uncertainty surrounding Iran's reaction after the attack on its consulate in Syria last week might cap the downside of the black gold. A top Iranian military advisor warned Israel over the weekend that its embassies could be targeted, fueling concern that the Middle East conflict could broaden. Additionally, the strikes on Russian refineries have also raised the geopolitical risk premium.

The International Energy Agency's (IEA) prediction for 2024 oil demand has risen as traders shift from bearishness to optimism, bolstered by recent improved manufacturing surveys in China, the United States, and India.

On the other hand, the US labor market report on Friday came in better than the market estimation, indicating the US economy ended the first quarter on solid ground. This report could prompt the Federal Reserve (Fed) to delay interest rate cuts this year, which might drag WTI prices lower. It’s worth noting that high interest rates have caused oil prices to fall in the past, as it can slow economic growth and reduce oil demand. 

Oil traders will monitor the API Weekly Crude Oil Stock on Tuesday. Later this week, the US and Chinese March Consumer Price Index (CPI) reports will be due on Wednesday and Thursday, respectively. These events could offer some hints about the economic health of the world's top two oil consumers.

• WTI kicks off the new week on a weaker note amid easing geopolitical tensions in the Middle East. 
• The post-NFP USD buying exerts additional pressure on the commodity and contributes to the fall.
• Expectations for a fall in fuel supply from Russia and signs of improving demand help limit losses.

West Texas Intermediate (WTI) US crude Oil prices open with a bearish gap on the first day of a new week and retreat further from over a five-month peak touched on Friday. The commodity, however, trims a part of Asian session losses and currently trades around the $85.00 psychological mark, still in the red for the second successive day. 

Israel withdrew more soldiers from southern Gaza and committed to fresh talks on a potential ceasefire with Hamas, easing concerns about the risk of a further escalation of conflicts and crude supply disruptions from the Middle East. This, along with the upbeat US NFP-inspired US Dollar (USD) strength, prompts some profit-taking around Crude Oil prices, especially after the recent blowout rally witnessed over the past two months or so.

Investors, meanwhile, remain concerned about the Ukrainian drone attacks on refineries in Russia. Apart from this, the OPEC+ clampdown on some countries to increase compliance with output cuts, along with a strong demand outlook, acts as a tailwind for Crude Oil prices. The optimism is being fueled by positive economic data from China – the world's top importer – and supports prospects for the emergence of some dip-buying around Crude Oil prices. 

The aforementioned fundamental backdrop makes it prudent to wait for strong follow-through selling before confirming that the black liquid has topped out in the near term and before positioning for any meaningful corrective decline. Even from a technical perspective, the recent breakout through the previous YTD peak, around the $83.55 area favours bullish traders amid positive oscillators on the daily chart, which have now eased from overbought territory.

• WTI is stuck in a tight range but is poised to close the week on a bullish note.
• Supply concerns and an improved demand outlook have boosted Oil’s appeal.
• US Biden criticized Ukraine for targeting Russia’s oil infrastructure.

West Texas Intermediate (WTI), futures on NYMEX, consolidate in a tight range around $86.80 in the European session on Friday. The Oil prices are set to conclude the week on a bullish time for the second straight time. The black gold sees a strong bull run in two weeks due to deepening supply concerns and expectations of a sharp revival in the global oil demand.

Escalating tensions in Eastern Europe and the Middle East have reinforced fears of oil supply risks. This week, Ukraine’s drone attacks on Russian oil refineries prompted upside risks to lower oil production, resulting in a fresh escalation in geopolitical tensions. US President Joe Biden criticized the event of Ukraine targeting Russia’s oil infrastructure as it could have drastic consequences to global oil prices.

In the Middle East region, air strikes by Israeli forces on the Iranian embassy in Damascus, resulting in the deaths of Iran's high-rank commanders, have deepened fears of Iran’s direct participation in the war in Gaza. Geopolitical tensions disrupt the supply chain, which increases the prices of various raw materials.

Meanwhile, a sharp recovery in the Manufacturing PMI in the Eurozone, the United Kingdom, and the United States has strengthened the outlook for oil demand. In the UK and the US, the Manufacturing PMI surprisingly returned to growth after contracting for more than a year. In the Eurozone, the Manufacturing PMI outperformed expectations but remains below the 50.0 threshold, which separates contraction from expansion. The oil prices have a direct relationship with the outlook of the manufacturing sector.

Going forward, investors will focus on the United States Nonfarm Payrolls (NFP) data for March, which will be published at 12:30 GMT. The labor market data will influence market expectations for the Federal Reserve (Fed) pivoting to rate cuts, which are currently expected in the June meeting.

• WTI price appreciated after Iran vowed retaliation for Israel's attack on Iran's embassy.
• NATO officials said that Ukrainian drone attacks on Russian refineries may have disrupted over 15% of capacity.
• The US has imposed sanctions on Oceanlink Maritime DMCC for its role in shipping commodities intended for the Iranian military.

West Texas Intermediate (WTI) oil price seems to extend its winning streak that began on March 27, buoyed by escalating geopolitical tensions and the looming possibility of disruptions in oil supply. WTI crude oil is currently trading around $86.20 per barrel during the Asian trading hours on Friday.

The rise in Crude oil prices is attributed to the potential threat of supply disruptions amid escalating geopolitical tensions, particularly after Israel attacked Iran's embassy in Syria. However, Israel has not officially claimed responsibility for the attack on Iran's embassy compound in Syria on Monday.

Furthermore, reports of increased threats against the Israeli embassy in the United States (US) by Iran have added to market concerns. Iran has pledged retaliation for an attack that resulted in the death of Iranian military officials.

Additionally, according to NATO officials on Thursday, ongoing Ukrainian drone attacks on refineries in Russia may have disrupted over 15% of Russian capacity. Furthermore, a Lukoil refinery in Russia is facing challenges in repairing its gasoline unit as the American firm Universal Oil Products (UOP) has declined to assist Lukoil. UOP had withdrawn from Russia following the country's invasion of Ukraine in February 2022.

On Thursday, the United States imposed fresh counterterrorism sanctions related to Iran against Oceanlink Maritime DMCC, based in the United Arab Emirates, along with its vessels. This action was taken due to the company's involvement in shipping commodities for the Iranian military. The Treasury Department stated that the US is utilizing financial sanctions as a measure to isolate Iran and hinder its capacity to finance its proxy groups while also supporting Russia's conflict in Ukraine.

This week, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, decided to maintain their current oil supply policy unchanged. The voluntary production cuts, totaling 2.2 million barrels per day (bpd), will continue until at least the end of June. These cuts supplement the existing agreement reached in 2022, which already encompasses reductions of 3.66 million bpd.

• WTI is seen consolidating its recent strong move to over a five-month peak.
• Worries about supply disruptions and tight global supply lend some support.
• Signs of improving demand should further contribute to limiting the downside.

West Texas Intermediate (WTI) US Crude Oil prices enter a bullish consolidation phase during the Asian session on Thursday and oscillate in a narrow trading band near the highest level since October 2023 touched the previous day. The commodity is currently placed just above the $85.00 mark, nearly unchanged for the day, and is influenced by a combination of diverging forces.

The official report published by the Energy Information Administration (EIA) on Wednesday showed an unexpected build in the US Crude stockpiles, which, in turn, is seen as a key factor acting as a headwind for the black liquid. The downside for Crude Oil prices, however, remains cushioned in the wake of concerns about supply disruptions in the Middle East, tight global supply, and signs of improving demand.

Against the backdrop of Ukrainian attacks on Russian refineries, which have cut fuel supply, the risk that the Israel-Hamas war may spread to include Iran and disrupt supplies in the key Middle East region acts as a tailwind for Crude Oil prices. Adding to this, a meeting of top OPEC+ ministers on Wednesday kept oil supply policy unchanged and pressed some countries to increase compliance with output cuts.

Meanwhile, Federal Reserve Chair Jerome Powell sounded cautious about future interest rate cuts in the wake of a still-resilient US economy. Adding to this, the upbeat Chinese manufacturing data released earlier this week fueled optimism about rising Oil demand from the world's largest crude importer. This could further lend support to Crude Oil prices and contribute to limiting any meaningful corrective slide.

• WTI edges higher to $84.85, a five-month high on Wednesday. 
• Geopolitical uncertainties in the Middle East and supply fears boosted oil prices. 
• The weaker US Dollar from the Fed’s dovish comments lift WTI prices. 

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $84.85, the highest since October 2023 on Wednesday. The uptick in WTI prices is bolstered by the weaker US Dollar (USD), and the supply fears amid the geopolitical uncertainties. 

The escalating geopolitical tensions in the Middle East and Russia-Ukrain, such as the Israeli airstrike on an Iranian embassy in Syria on Monday, the ongoing Ukrainian attacks on Russian refineries, and the Houthi attacks on shipping in the Red Sea, raise fear of further tightening supplies, which boost WTI prices. 

Oil traders will monitor the Joint OPEC/non-OPEC Ministerial Monitoring Committee (JMMC) meeting on Wednesday. The markets expect the OPEC+ committee to extend voluntary cuts for the second quarter of the year.

Furthermore, the softer Greenback amid the growing speculation on rate cuts from the Fed also provides some support for WTI prices. Futures traders anticipate the US Fed to start easing in the June meeting and to cut by three-quarters of a percentage point by the end of the year. A weaker USD lifts WTI prices as it makes dollar-denominated oil more cheaper for holders of other currencies, boosting oil demand. 

Market players will closely watch Fedspeak on Wednesday. The Fed's Bowman, Goolsbee, Barr, Kugler, and Powell are set to speak later in the day. If they deliver any hawkish comments, the US Dollar could attract some buyers, which might cap the WTI’s upside. 

 

• WTI price receives upward support on concerns over a supply shortage.
• Reuters survey indicates that Iraq and Nigeria have reduced their oil exports in March.
• Gasoline prices could spike in the US due to tighter global fuel supplies following Ukrainian attacks on Russian refineries.

West Texas Intermediate (WTI) oil price remains on the defensive at around $83.50 per barrel during the Asian trading hours on Tuesday. However, Crude oil prices are on the rise due to robust manufacturing data from both the United States (US) and China, exceeding expectations. The expansion of manufacturing activity in both countries during March is seen by markets as a positive signal for increased oil demand.

Furthermore, Crude oil prices receive additional upward support from a Reuters survey indicating a decline in oil output from the Organization of the Petroleum Exporting Countries (OPEC) in March. Iraq and Nigeria have reduced their oil exports, aligning with ongoing voluntary supply cuts by certain members in agreement with the broader OPEC+ alliance. The group produced 26.42 million barrels per day (bpd) last month, representing a decrease of 50,000 bpd compared to February.

OPEC+ is set to convene for a joint ministerial meeting on Wednesday, where market fundamentals and member adherence to production targets will be evaluated. There is widespread anticipation that current output policies will be maintained.

According to Patrick De Haan, a petroleum analyst at GasBuddy.com, the US market could see gasoline prices spike by up to 15 cents per gallon due to tighter global fuel supplies following Ukraine's recent attacks on Russian refineries.

Ukrainian drone strikes have severely impacted several Russian refineries, resulting in a reduction in Russia's fuel exports. These attacks have caused nearly 1 million barrels per day of Russian crude processing capacity to become inactive.

• WTI oil price extends its winning streak due to the likelihood of OPEC+ retaining output policies.
• Ukrainian drone stacks have rendered offline nearly 1 million bpd of Russian Crude processing capacity.
• Crude oil demand could be enhanced due to the recent expansion in Chinese manufacturing activity.

West Texas Intermediate (WTI) oil price is on an upward trajectory for the third successive session, with the commodity trading around $83.10 per barrel during Asian trading hours on Monday. The sustained increase in Crude oil prices is attributed to anticipated supply constraints stemming from production cuts by the Organization of the Petroleum Exporting Countries and their allies (OPEC+).

Investors are eagerly awaiting the OPEC+’s joint ministerial meeting scheduled for this week. It is anticipated that during the meeting, OPEC+ will assess market fundamentals and members' adherence to production targets, with widespread expectations for the retention of current output policies.

Furthermore, Russian Deputy Prime Minister Alexander Novak emphasized on Friday that oil companies should prioritize reducing output over exports in the second quarter to align with OPEC+ production targets. He also stated that there is no necessity for Russia to impose export bans on diesel to address escalating prices and potential fuel shortages following drone attacks that disrupted refining capacity.

Ukrainian drone strikes have crippled numerous Russian refineries, leading to a decline in Russia's fuel exports. These attacks have rendered nearly 1 million barrels per day of Russian Crude processing capacity inactive.

Official data revealed that Chinese manufacturing activity witnessed its first expansion in six months in March, enhancing the outlook for Crude oil demand in the world’s leading Crude importer. Analysts at Goldman Sachs noted that oil demand in Europe exceeded expectations, with a year-on-year increase of 100,000 barrels per day (bpd) recorded in February, contrasting with their earlier projection of a 200,000 bpd decline for 2024.

• WTI price gained ground as OPEC+ is expected to maintain their production cuts.
• Ukrainian attacks on Russia's infrastructure are contributing to the sentiment of tightening global Crude supplies.
• Fuel suppliers in Baltimore are expected to encounter delays following the collapse of the Francis Scott Key Bridge.

West Texas Intermediate (WTI) oil price settled higher at $82.82 per barrel on Thursday. Markets are closed on Good Friday. The rise in Crude oil prices is attributed to the likelihood of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) maintaining their production cuts.

Investors are expected to closely monitor the Joint Monitoring Ministerial Committee meeting of the OPEC next week. Despite increased geopolitical risks, which have raised concerns about potential supply disruptions, it is unlikely that OPEC+ will change their oil output policies until a full ministerial gathering scheduled for June. Furthermore, Crude oil prices are buoyed by the ongoing Ukrainian attacks on Russia's energy infrastructure, contributing to the sentiment of tightening global Crude supplies.

The Energy Information Administration (EIA) report indicated a weekly rise in US crude inventories. For the week ending on March 22, the EIA Crude Oil Stocks Change reported an increase of 3.165 million barrels in stock, contrary to the expected decline of 1.275 million barrels and the previous decline of 1.952 million barrels.

Following the collapse of the Francis Scott Key Bridge on Tuesday, fuel suppliers in Baltimore are expected to encounter trucking delays and other logistical challenges. The collapse resulted in parts of the bridge falling into shipping lanes at the mouth of the Port of Baltimore, leading to the indefinite closure of the city's port.

US Gross Domestic Product (GDP) Annualized expanded by 3.4% in the fourth quarter of 2023, exceeding market expectations which anticipated a 3.2% increase. The US Gross Domestic Product Price Index remained stable with a 1.7% increase, aligning with projections for Q4. Investors further await the latest US Personal Consumption Expenditures (PCE) price index report, the Federal Reserve's preferred inflation measure, scheduled for release on Friday, to gain insights into the trajectory of interest rates.

• TI trades on a softer note near $81.50 on Thursday. 
• The high-for-longer rate narrative from the Fed boosts the US Dollar. 
• US crude oil inventories rose by 3.165 million barrels for the week ending March 22 from a decline of 1.952 million barrels. 

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $81.50 on Wednesday. WTI prices edge lower amid the recovery of the US Dollar (USD) and a surprise jump in U.S. crude and gasoline stocks.

The hawkish comments from US Federal Reserve (Fed) policymaker early Thursday lift the Greenback across the board. The Fed Governor Christopher Waller, one of the most hawkish Fed officials, said that the US central bank is not in a hurry to lower the benchmark interest rate and may need to retain the current rate target for longer than previously expected. A firmer USD weighs on WTI prices as it makes dollar-denominated oil more expensive for holders of other currencies, dampening oil demand.

Additionally, US crude oil inventories rose by 3.165 million barrels for the week ending March 22 from a decline of 1.952 million barrels, according to the Energy Information Administration (EIA). A surprise US crude inventories build also contributed to the pressure on WTI prices.

On the other hand, the escalating geopolitical tensions in the Middle East and between Russia and Ukraine could raise the fear of tighter global supply and cap the downside of WTI prices. Ukraine has been striking Russia's oil infrastructure since the start of the conflict but intensified its attacks in late 2023. There have been seven drone attacks this month alone, and experts estimate that the disruptions have impacted almost 12% of Russia's total oil processing capacity.

The Organisation of Petroleum Exporting Countries and its allies (OPEC+) decided to extend output cuts of around 2.2 million bpd until the end of June. OPEC+ is expected to affirm its production cuts policy until a full ministerial meeting in June. 

Oil traders will watch the US Gross Domestic Product Annualized (GDP) for the fourth quarter (Q4) on Thursday, which is estimated to remain steady at 3.2%. On Friday, the US Personal Consumption Expenditures Price Index (PCE) data for February and Fed’s Powell will be in the spotlight. 

 

• WTI trades in negative territory near $80.85 amid the firmer USD. 
• The prospect of ongoing geopolitical tensions could lift the WTI prices. 
• OPEC+ set to affirm its production cuts policy amid tensions in the Middle East and Russia. 

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $80.85 on Wednesday. WTI prices edge lower amid the modest rebound of US Dollar (USD) and mixed reaction to the loss of Russian refinery capacity after recent Ukrainian n attacks.

Refinery disruptions in Russia caused by Ukrainian drone attacks raised concern over global oil supply. Analysts forecast that these disruptions affected around 12% of Russia's total oil processing capacity. The geopolitical factors are likely to play a key role in WTI prices and the escalating tension in both the Middle East and Russia-Ukraine might lift the black gold. 

Furthermore, the Organisation of Petroleum Exporting Countries and its allies (OPEC+) are set to affirm its production cuts policy amid tensions in the Middle East and Russia. It’s worth noting that when OPEC+ lowers supply when demand falls, WTI prices tend to rise.

Additionally, the uptick of WTI prices is supported by the softer USD which typically makes oil cheaper for buyers holding other currencies. The expectation of interest rate cuts by the US Federal Reserve (Fed) this year provides some support to WTI prices. The Fed Chairman Jerome Powell reiterated last week that policymakers plan to cut rates before the end of this year, given economic growth continues.

Market players will closely watch the US February Personal Consumption Expenditures Price Index (PCE) data, due on Friday. If the report shows stronger-than-expected readings, this could delay the expectation of rate cuts from the Fed this year and cap the upside of the WTI prices. Federal Funds Futures have priced in a 74.5% chance that the Fed will cut rates in the June meeting, according to CME Group's FedWatch tool. 
 

• WTI prices gain momentum on the softer USD and supply concerns. 
• Disruptions to oil refineries in Russia by recent attacks, support the upward trajectory of WTI prices. 
• The delay of interest rate cuts by the US Federal Reserve (Fed) might cap the upside of WTI prices. 
• The US February PCE report on Friday will be the highlight of this week. 

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $82.00 on Tuesday. WTI prices edge higher amid the weaker US Dollar (USD) and the renewed geopolitical tensions in the Middle East and Eastern Europe, which fuel fears of supply disruption. 

The escalating geopolitical tension in the Middle East, combined with a rise in attacks on energy facilities in Russia and Ukraine, raised fears over global oil supplies and lift WTI prices. Disruptions to oil refineries in Russia were caused by Ukraine's recent attacks on Russian oil infrastructure, with at least seven refineries attacked this month alone. This increases the demand for available crude oil shipments. Analysts estimated that these disruptions affected around 12% of Russia's total oil processing capacity. 

Apart from this, the anticipation of interest rate cuts by the US Federal Reserve (Fed) this year has lifted the black gold. Lower interest rates typically stimulate the economy, which leads to more demand for WTI prices. Market players will take more cues from the US Personal Consumption Expenditures Price Index (PCE) data for February on Friday for confirmation on the timing of rate cuts. However, if the report shows stronger-than-expected readings, this could delay the expectation of rate cuts from the Fed this year and cap the upside of the WTI prices. 

Moving on, oil traders will keep an eye on the US Consumer Confidence by the Conference Board, Durable Goods Orders, and the FHFA’s House Price Index, due on Tuesday. Later this week, the US Gross Domestic Product Annualized (Q4) will be released on Thursday. The US February PCE data will be published on Friday. These events could significantly impact the USD-denominated WTI price. Oil traders will take cues from the data and find trading opportunities around WTI prices.