WTI: Higher than expected EIA data, receding geopolitical tension cap earlier recovery

  • WTI slips from weekly high amid reports of the Syrian ceasefire, silence from Iran and downbeat oil stocks.
  • Weaker USD, upbeat trade news helped the energy benchmark the previous day.

Despite benefiting from trade-positive headlines and the weaker greenback, WTI fails to hold on to recovery gains while nearing $54.00 during early Friday in Asia.

The black gold could have taken clues from the recent rise in the weekly United States (US) Crude Oil Stocks report from the Energy Information Administration (EIA) data for the period ended on October 11. The US inventories rallied more than 2.878M anticipated and 2.927M prior to 9.281M.

Also adding to the downside pressure could be a recent ceasefire by the Turkish leader in the nation’s fight against Kurdish fighters in Syria. Further, a lack of negative news concerning the US-Iran tension and the latest statement from the White House Economic Adviser Larry Kudlow, which dims the US-China trade optimism, might also be considered favoring sellers.

The oil benchmark earlier benefited from the US Dollar (USD) weakness, mainly due to downbeat data increasing odds of further rate cuts from the US Federal Reserve, and upbeat comments from China’s Commerce Ministry.

Investors will now keep an eye over China’s Gross Domestic Product (GDP) data for fresh impulse while trade headlines could keep directing prices.

Technical Analysis

FXStreet Analyst Ross J Burland holds a bearish view while spotting price trading below 50 and 21-DMA:

"While below the 50 and 21-day moving averages, WTI remains directly offered and bears seek a close below the 50 handle which will bring the prospect of a run down to the Nov 2018 lows at 49.39 again. This area protects the 46.90 level ahead of the 18th Dec lows down at 45.77 ahead of the Dec double bottom lows below 42.50. However, should the bulls break through trendline resistance and exceed the 21 and 50 DMAs, then the 56 handle ahead of the 200 DMA come back into play guarding the 57 handle."

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD defends 1.1000 ahead of key data, Powell’s testimony

EUR/USD off four-week lows but downside risks persist. USD/CNY’s rise amid trade uncertainty could limit the EUR bulls. The focus stays on Eurozone Industrial Production, US CPI and Powell’s testimony.


GBP/USD: Modestly changed below 21-day SMA ahead of UK CPI

While the absence of major catalysts from the UK has recently tamed the GBP/USD pair’s moves, the market’s fear ahead of the key data/events also contributes to the latest inactivity. The Cable seesaws around 1.2850 during pre-London open on Wednesday.


USD/JPY supported at 10-DMA amid risk-off, eyes US CPI, Powell

USD/JPY bounced-off the10-DMA support near 108.85 and regained the 109 handle, despite the risk-off action in the Asian equities and US equity futures amid trade deal uncertainty. The bulls seem to have found some support from higher US Treasury yields. 


Gold fails to hold on to recovery amid USD strength, trade woes

Although pessimism surrounding the US trade relations with China and the EU, coupled with Hong Kong protests, favored Gold to bounce off multi-month lows on Tue, prices are again under pressure while taking rounds to $1,458 during today’s Asian session.

Gold News

UK inflation report outlook: GBP/USD may stumble on another CPI slide

Headline Consumer Price Index (CPI) has missed expectations in the past two months by standing at 1.7% annual. Economists seem to have adapted their expectations and forecast a further deceleration to 1.6% in October's inflation report. 

Read more