Oil back under pressure after EIA report-led rally

Eren Sengezer FXStreet

Crude oil prices failed to extend the rally witnessed following the EIA stock report and the barrel of West Texas Intermediate quickly slipped back below $50 mark. As of writing, WTI was trading at $49.36, down 0.4% on the day.

On Wednesday, the U.S. Energy Department revealed that crude stocks dropped 3.6 million barrels last week and surprised the markets as yesterday's the American Petroleum Institute showed a buildup in its inventories. Further details of the EIA report displayed a higher capacity utilization by refineries, suggesting that the pace of production output is likely to continue to accelerate in the U.S. "We're running a slight deficit and starting to eat into inventories but not by any meaningful amount," Tanya Andrien, vice president of strategic development at Drillinginfo, told Reuters.

Furthermore, after cutting its production to 10 million barrels a day in March, Saudi Arabia, OPEC's biggest producer, fell behind Russia and Angola as China's supplier and experts are speculating that another OPEC market share battle may be underway, increasing the uncertainty surrounding a possible extension to production output cut deal.

Oil: OPEC production cuts to turn into solid oil inventory draws? – Goldman Sachs

Technical outlook

The barrel of WTI is facing the immediate hurdle at $50 (psychological level) followed by $50.90 (Apr. 21 high) and $51.30 (Apr. 4 high). On the flip side, a break below $48.90 (Apr. 25 low) could aim for $48 (psychological level) and $47.10 (Mar. 27 low).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.