WTI hovers around $78.50 after recent gains on US Crude Oil Stocks Change
|- WTI price retreats after posting recent gains on downbeat US Crude stockpiles.
- US EIA Crude Oil Stocks Change built by 1.367 million barrels, lower than the expected 2.116 million barrels.
- Saudi Arabia decided to raise prices of its primary grade for Asian buyers.
- Chinese Trade Balance USD rose to $125.16B in February, from $75.34B prior.
West Texas Intermediate (WTI) oil price edges lower to near $78.50 per barrel during the Asian trading hours on Thursday. However, Crude oil prices surged on Wednesday after US oil stockpiles rose less than expected for the week ending on March 1.
US Energy Information Administration (EIA) showed that Crude Oil Stocks Change rose for a sixth week in a row, building by 1.367 million barrels against the expected 2.116 million barrels and 4.199 million barrels prior. Additionally, US API Weekly Crude Oil Stock data reported build-in stockpiles of 0.423 million barrels, contrary to market expectations of a decrease to 2.6 million barrels from the previous 8.428 million barrels.
Additionally, the prices of Crude oil received support for a weaker US Dollar (USD) after the Federal Reserve (Fed) Chair Jerome Powell’s indication that the central bank is prepared to lower borrowing costs "at some point this year," during his testimony before the House Financial Services Committee.
Also, the positive sentiment surrounding the Chinese economy, highlighted by the Trade Balance data, may buoy oil prices. China's Trade Balance for February surged to $125.16 billion, surpassing expectations of $103.7 billion and the previous figure of $75.34 billion. Additionally, year-on-year imports and exports increased by 3.5% and 7.1%, respectively.
Saudi Arabia's unexpected decision to raise prices of its primary grade for buyers in Asia comes after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) decided to extend voluntary oil output cuts of 2.2 million barrels per day (bpd) into the second quarter.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.