API inventories show a build of 3.857mln

Rajan Dhall, MSTA FX Daily

The API inventory data recorded a build of 3.857 million barrels last week and this adds to the oil market woes after Saudi Arabia confirmed their lowest export numbers in 30 years. In terms of the rest of the report, Cushing stocks fell by 3.289 million barrels. Gasoline stocks rose by 4.267 million and lastly distillate recorded a build of 0.919M.

Spot WTI 30-minute chart

Looking at the 30-minute chart now and the price fell around 1.15% following the announcement At the time of writing these moves have now been largely pared and WTI trades 2.22% higher on Tuesday in line with the broader risk sentiment for the session.

It feels like the market is ignoring some very important fundamental facts. The Chinese have now imposed a ban on flights to and from Beijing after a possible second wave of infections hits the city. The city officials have also decided to closed schools but one of the main issues is the fact that some of the infected people visited a very densely populated market. The situation in America is also pretty tense right now as Texas coronavirus cases rose 2.9% above the 7-day average. Florida is also struggling as the case count there moved 3.6% higher vs the 7 day average of 2.5%. New York, however, has improved with just a 0.2% rise.

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.