|

WTI keeps the red below mid-$77.00s, remains on track to register modest weekly losses

  • WTI comes under some selling pressure on Friday and snaps a two-day winning streak.
  • Concerns about slowing global demand exert downward pressure on the black liquid.
  • Worries about supply disruptions in the Middle East should help limit deeper losses.

West Texas Intermediate (WTI) US Crude Oil prices drift lower on the last day of the week and move away from a fresh monthly peak, around the $78.75 region touched on Thursday. The commodity remains depressed through the first half of the European session and currently trades near the daily low, around mid-$77.00s.

Investors remain concerned about the worsening economic conditions across the globe, especially after Japan and the UK entered a technical recession during the fourth quarter of 2023. Moreover, expectations that higher borrowing costs could hinder economic activity and dent fuel demand in the world's largest oil consumer turn out to be key factors exerting downward pressure on Oil prices.

That said, signs of tightening global supplies, due to disruptions in the Middle East, might continue to underpin the commodity and help limit any meaningful corrective decline. In fact, the Israel-Hamas war has shown no signs of de-escalation yet, while attacks on commercial vessels by the Iran-aligned Houthi rebels in Yemen have raised worries about trade flow through the critical Red Sea waterway.

Meanwhile, the Energy Information Administration reported on Thursday that US Crude Oil inventory rose by 3.514 million barrels for the week to February 16, down sharply from a sizeable build of 12 million barrels previously. This reaffirms expectations that demand from the US refiners will improve after the recent outages and warrants caution before placing bearish bets around the black liquid.

Even from a technical perspective, Crude Oil prices have been oscillating in a familiar trading range over the past week or so. This points to indecision among traders over the next leg of a directional move. Nevertheless, the commodity remains on track to register modest weekly losses for the first time in the previous three.

WTI US OIL

Overview
Today last price77.51
Today Daily Change-0.76
Today Daily Change %-0.97
Today daily open78.27
 
Trends
Daily SMA2076.3
Daily SMA5074.42
Daily SMA10076.61
Daily SMA20077.58
 
Levels
Previous Daily High78.74
Previous Daily Low77.09
Previous Weekly High78.47
Previous Weekly Low75.51
Previous Monthly High79.19
Previous Monthly Low69.41
Daily Fibonacci 38.2%78.11
Daily Fibonacci 61.8%77.72
Daily Pivot Point S177.33
Daily Pivot Point S276.38
Daily Pivot Point S375.68
Daily Pivot Point R178.98
Daily Pivot Point R279.68
Daily Pivot Point R380.63

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

More from Haresh Menghani
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin is steadying above $91,000 at the time of writing on Friday. Ethereum remains above $3,100, reflecting positive sentiment ahead of the Federal Reserve's (Fed) monetary policy meeting on December 10.

Week ahead – Rate cut or market shock? The Fed decides

Fed rate cut widely expected; dot plot and overall meeting rhetoric also matter. Risk appetite is supported by Fed rate cut expectations; cryptos show signs of life. RBA, BoC and SNB also meet; chances of surprises are relatively low.

Ripple faces persistent bear risks, shrugging off ETF inflows

Ripple is extending its decline for the second consecutive day, trading at $2.06 at the time of writing on Friday. Sentiment surrounding the cross-border remittance token continues to lag despite steady inflows into XRP spot ETFs.