• WTI crude oil prices stay pressured around intraday low after refreshing eight-year high the previous day.
  • OPEC+ agrees to increase oil output by 400,000 bpd per month, EIA inventories mark surprise draw.
  • Market sentiment sours amid pre-ECB, BOE anxiety, yields, DXY pare recent losses.
  • Risk catalysts eyes, US data add importance to the busy day.

WTI crude oil prices print the heaviest daily fall in over a week, depressed around intraday low of $86.68 during early Thursday.

The oil benchmark refreshed the highest level since 2014 the previous day before stepping back from $88.75. In doing so, the quote printed a bearish Doji candlestick on the daily formation.

That said, the weekly official oil inventories, namely EIA Crude Oil Stocks Change, marked a surprise fall to -1.047M versus +1.525M market consensus and +2.377M prior. Also positive for the oil prices are the fears of Russian invasion of Ukraine as Moscow escalates military presence at the border.

On the contrary, the Organization of the Petroleum Exporting Countries and allies led by Russia, a group known as OPEC+, agreed to the previously announced terms of boosting crude output by 400,000 barrels per day (bpd) per month the previous day, per Reuters. “The 10 members of OPEC with quotas in the OPEC+ group increased production by about 210,000 bpd in January, while Russia's output rose by about 100,000 bpd, according to data published by Reuters,” the news adds.

Additionally, weighing on the oil prices is the market’s anxiety ahead of the key monetary policy meeting by the European Central Bank (ECB) and the Bank of England (BOE). Furthermore, comments highlighting inflation fears from US President Biden’s all three Nominees for the Fed Board hints at the Fed’s hawkish stand in the future and exert additional downside burden on the commodity prices.

Talking about the US data, ADP Employment Change for January surprised markets with -301K figures versus +207K expected, which in turn signal downbeat US jobs report for Friday and also weaken the risk appetite.

Looking forward, global traders may pay a little attention to energy prices with eyes on the ECB and BOE. However, markets are likely to remain sidelined, mostly risk-off, ahead of the aforementioned monetary policy decisions. Following that, US ISM Services PMI for January, expected 59.5 versus 62.0 prior, will also be important to watch further direction.

Technical analysis

A bearish candlestick near the multi-day high joins overbought RSI to hint at the WTI crude oil’s further weakness until the quote stays beyond the latest top near $88.75. However, an upward sloping trend line from December 20, around $86.70, tests the oil sellers before directing them to the 21-DMA level near $84.00.

Additional important levels

Overview
Today last price 86.79
Today Daily Change -0.66
Today Daily Change % -0.75%
Today daily open 87.45
 
Trends
Daily SMA20 83.88
Daily SMA50 76.74
Daily SMA100 77.69
Daily SMA200 73.34
 
Levels
Previous Daily High 88.75
Previous Daily Low 86.27
Previous Weekly High 88.22
Previous Weekly Low 81.71
Previous Monthly High 88.22
Previous Monthly Low 74.12
Daily Fibonacci 38.2% 87.22
Daily Fibonacci 61.8% 87.81
Daily Pivot Point S1 86.23
Daily Pivot Point S2 85.01
Daily Pivot Point S3 83.75
Daily Pivot Point R1 88.71
Daily Pivot Point R2 89.97
Daily Pivot Point R3 91.19

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD dribbles around key support below 0.6900, China PMI, US PCE inflation eyed

AUD/USD dribbles around key support below 0.6900, China PMI, US PCE inflation eyed

AUD/USD holds onto the previous day’s bounce off important support while taking rounds to 0.6870 during Thursday’s inactive early Asian session. In addition to defending the corrective pullback, the Aussie pair also portrays the market’s anxiety ahead of important data from a major customer China.

AUD/USD News

EUR/USD: Oversold RSI probes bears around 1.0450

EUR/USD: Oversold RSI probes bears around 1.0450

EUR/USD dribbles around a two-week low as oversold RSI conditions challenge further downside during Thursday’s inactive Asian session. That said, the major currency pair takes rounds to 1.0450-40 at the latest.

EUR/USD News

Gold stays on the way to $1,807 support ahead of US PCE inflation

Gold stays on the way to $1,807 support ahead of US PCE inflation

Gold Price struggles to defend the previous day’s bounce off short-term key support during Thursday’s Asian session. In doing so, the yellow metal remains indecisive around $1,818. The yellow metal dropped to the lowest levels in two weeks the previous day.

Gold News

Polygon's MATIC price signals hard times to come, here's why

Polygon's MATIC price signals hard times to come, here's why
Polygon’s MATIC price signals bears have re-entered the market. If the profit-taking continues, a cataclysmic fall could occur to breach the $0.31 low
Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures