- WTI fails to hold on to recovery gains marked after soft inventory build.
- Russian commitment to OPEC policies and doubts over Iran’s claims to have contained protests please buyers.
- Hong Kong bill adds to the US-China pessimism.
With the trade/political jitters between the world’s top two economies likely challenging global energy demand, WTI stops the recent recovery below 200-day EMA while taking rounds to $57.00 during the Asian morning on Thursday.
The trade stalemate between the United States (US) and China worsened recently after President Trump said he doesn’t think “China is stepping up to the level I want in trade talks.” Also contributing to the pessimism is the Reuters’ news that the Republican leader Trump is expected to sign Hong Kong Human Rights Bill passed by the Congress.
WTI earlier benefited from the weekly inventory numbers from the Energy Information Administration (EIA). The official Crude Oil Stocks change for the week ended on November 15 rose by 1.4 million barrels to come in below the market expectation of 1.54 million barrels. Also, statement from Russian President Vladimir Putin that they will continue to work with Saudi Arabia and the Organization of the Petroleum Exporting Countries (OPEC) on output curbs to provide additional support to crude oil prices turned down the earlier speculations that the OPEC+ alliance will find it difficult for further output cuts. Further, doubts that Iran’s protests, which led to nearly 100 death cited by the Wall Street Journal (WSJ) and internet outage, continue added strength to the energy benchmark.
On the contrary, doubts over the global economy, as suggested by the German Finance Ministry report, challenged the price up-moves.
While the US Philadelphia Fed Manufacturing Survey occupies the economic calendar, expected 7.00 versus 5.6 prior, the market’s focus will be on the trade/political headlines concerning the US and China.
Technical Analysis
Unless providing a daily closing beyond 200-day Exponential Moving Average (EMA) level near $57.10, the black gold is less likely to aim at a monthly top surrounding $58.20, which in turn highlights $54.90 and $54.15 as near-term key supports.
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
Editors’ Picks
EUR/USD eases below 1.0850 on renewed USD strength
EUR/USD stays under pressure and trades in the red below 1.0850 in the European session. Although the ZEW survey for Germany and the Eurozone showed a noticeable improvement in economic sentiment, broad USD strength doesn't allow the pair to gain traction.
GBP/USD drops below 1.2700 on notable US Dollar demand
GBP/USD is extending the downside below 1.2700 in the European trading hours on Tuesday. The ongoing bullish momentum in the US Dollar, despite sluggish US Treasury bond yields, undermines the pair. Mid-tier US housing data are coming up next.
Gold price struggles to lure buyers, holds steady above one-week low ahead of FOMC meeting
Gold price ticks lower amid reduced Fed rate cut bets, elevated US bond yields and stronger USD. Geopolitical tensions could lend some support to the safe-haven XAU/USD and help limit losses.
Why is the crypto market crashing?
The two most important contribution to the ongoing bull market is the meteoric rise in Bitcoin due to the ETF approval and the sudden interest spike in Solana ecosystem. But the recent move suggests that the upward momentum is dissipating and a correction looms.
Canada CPI Preview: Inflation pickup could scale back bets on early interest-rate cut
The Canadian Consumer Price Index is expected to have risen by 3.1% YoY in February. The BoC shows no rush to lower its interest rate. The Canadian Dollar maintains its multi-day lows against the US Dollar around 1.3540.