WTI bulls move in on supply side issues, Fed looms


  • Crude Oil was higher on Monday, as supply-side issues offset concerns of weaker demand.
  • TC Energy Corp said its continuing its recovery efforts but gave no indication of a restart.

West Texas Intermediate, WTI, crude oil was higher on Monday, as supply-side issues offset concerns of weaker demand. At the time of writing, WTI is trading at $73.40 and a touch higher by some 0.1% having climbed from a low of $73.27 to reach a high of $73.51. 

Supply issues have overcome recession worries despite the pending US consumer Price index and the Federal Reserve meeting which are events coming up over the next sessions. The Fed is expected to hike rates by 50 bps on Wednesday after today's inflation data from other US which could cement the sentiment surrounding the Fed

''Core prices likely maintained a firm pace in November, rising 0.3% MoM for a second consecutive month. Shelter inflation likely remained the key wildcard, though we look for goods deflation to act again as an offset. Importantly, gas prices are expected to provide relief to the CPI, as they fell in Nov. All told, our m/m forecasts imply 7.3%/6.1% YoY for total/core prices,'' analysts at TD Securities said.

Meanwhile, the money markets are currently pricing an almost 75% chance that the US central bank will hike rates by 50 basis points after delivering four successive 75 basis point rate increases. However, some analysts anticipate a hawkish outcome from the event. 

TC Energy Corp latest

For oil-related news, despite reports that the Keystone pipeline was being partially reopened, it remained completely shut on Monday, analysts at ANZ Bank explained:

''TC Energy Corp said its continuing its recovery efforts but gave no indication of a restart. The pipeline is a key conduit for Canadian crude into the WTI pricing point of Cushing. WTI subsequently rallied more than 3%.''

Meanwhile, the analysts noted that the uncertainty surrounding the impact of European sanctions on Russian oil is subsiding:

''Ship tracking data suggests Russian crude is being diverted to China and India. The flows into Asia have surge to more than 3mb/d in the week to 9 December. This accounts for 89% of all shipments from Russia. Weakness in China is also persisting. The number of supertankers signalling China as their next destination fell to 104, the lowest level since 30 September. The glut of tankers in Turkey’s vital shipping strait is also clearing. On Sunday, only 19 tankers were waiting to pass through, down from 27 on Saturday.''

WTI US OIL

Overview
Today last price 73.5
Today Daily Change -0.05
Today Daily Change % -0.07
Today daily open 73.55
 
Trends
Daily SMA20 78.23
Daily SMA50 83.49
Daily SMA100 85.77
Daily SMA200 95.78
 
Levels
Previous Daily High 74
Previous Daily Low 70.45
Previous Weekly High 82.74
Previous Weekly Low 70.27
Previous Monthly High 92.92
Previous Monthly Low 73.66
Daily Fibonacci 38.2% 72.64
Daily Fibonacci 61.8% 71.81
Daily Pivot Point S1 71.33
Daily Pivot Point S2 69.12
Daily Pivot Point S3 67.78
Daily Pivot Point R1 74.88
Daily Pivot Point R2 76.22
Daily Pivot Point R3 78.43

 

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD consolidates weekly gains above 1.1150

EUR/USD consolidates weekly gains above 1.1150

EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.

EUR/USD News
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains

GBP/USD stabilizes near 1.3300, looks to post strong weekly gains

GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains. 

GBP/USD News
Gold extends rally to new record-high above $2,610

Gold extends rally to new record-high above $2,610

Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.

Gold News
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap

Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap

SNB is expected to ease for third time; might cut by 50bps. RBA to hold rates but could turn less hawkish as CPI falls. After inaugural Fed cut, attention turns to PCE inflation.

Read more
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures