WTI loses ground below $74.50, investors focus on more supply

WTI edges lower to $74.30 amid the rising oil supply.
US crude oil inventories fell by 6.674M barrels for the week ending January 19 vs. 0.483M barrels gains previously.
The rising geopolitical tensions in the Red Sea are a primary driver behind lower demand for oil.

Lallalit Srijandorn FXStreet

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $74.30 on Wednesday. WTI prices drift lower on the day as traders focus on increasing oil output in the US and rising supply in Libya and Norway.

According to the American Petroleum Institute weekly report on Wednesday, US crude oil inventories fell by 6.674M barrels for the week ending January 19 from the previous reading of 0.483M barrels.

Elsewhere, Norway’s crude production rose to 1.85M barrels per day (bpd) in December from 1.81M bpd the previous month, while Libya’s production was at 300,000 bpd. That being said, rising production might exert some pressure on WTI prices.

Apart from this, the sluggish economic recovery in China weighs on WTI prices, as China is the world’s largest oil importer. The weaker-than-expected GDP growth number for the fourth quarter of 2023 dampened oil demand.

On the other hand, the geopolitical tensions in the Red Sea might cap the downside of WTI prices. The Pentagon said on Monday that the US and British forces carried out a new round of strikes in Yemen, targeting a Houthi underground storage site as well as missile and surveillance capabilities used by the Iran-aligned group against Red Sea shipping.

Oil traders will monitor US S&P Global Purchasing Managers Index (PMI) data on Wednesday. The US GDP data for Q4 will be released on Thursday and the Core Personal Consumption Expenditures Price Index (Core PCE) will be due on Friday. These events could significantly impact the USD-denominated WTI price. Oil traders will take cues from the data and find trading opportunities around WTI prices.

WTI US OIL

Overview
Today last price	74.37
Today Daily Change	-0.13
Today Daily Change %	-0.17
Today daily open	74.5

Trends
Daily SMA20	72.63
Daily SMA50	73.41
Daily SMA100	79.3
Daily SMA200	77.27

Levels
Previous Daily High	75.21
Previous Daily Low	73.4
Previous Weekly High	74.6
Previous Weekly Low	70.63
Previous Monthly High	76.79
Previous Monthly Low	67.97
Daily Fibonacci 38.2%	74.09
Daily Fibonacci 61.8%	74.52
Daily Pivot Point S1	73.53
Daily Pivot Point S2	72.56
Daily Pivot Point S3	71.72
Daily Pivot Point R1	75.34
Daily Pivot Point R2	76.18
Daily Pivot Point R3	77.16

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

AUD/USD extends the range play above 0.7200 as traders await US inflation data

AUD/USD is seen extending its consolidative price move above 0.7200 during the Asian session on Thursday amid mixed cues. Rising RBA rate-hike bets keep the Aussie close to its highest level since May 14. However, hawkish Fed expectations and escalating US-Iran tensions offer some support to the US Dollar, capping the currency pair as traders await US inflation figures.

USD/JPY consolidates around 153.50 as bears turn cautious ahead of US inflation

USD/JPY stabilizes above 153.50 during the Asian session on Thursday, but remains near a seven-month low set earlier this week as hawkish BoJ repricing continues to underpin the Japanese Yen. Meanwhile, rising September Fed rate-hike bets and escalating US-Iran tensions help ease US Dollar selling pressure, offering some support to the currency pair ahead of US inflation figures.

Gold sticks to gains, eyes $4,450 as USD remains depressed ahead of US inflation data

Gold turns higher following an intraday dip to sub-$4,400 levels, and moves further away from a one-week low touched the previous day. The commodity, however, remains below the $4,450 pivotal point as bulls seem hesitant ahead of US inflation figures. The US Producer Price Index report will be published later today, while the US Consumer Price Index is due on Friday.

XRP rally cools, XLM heads toward a make-or-break support

Ripple (XRP) and Stellar (XLM) trade under pressure on Thursday after losing over 2% and 3% so far this week. XRP and XLM are both nearing their crucial support zones, which could determine the next directional move. Meanwhile, mixed derivatives and on-chain data suggest upside potential remains limited for both altcoins. CryptoQuant’s summary data shows cautious signs for both altcoins.

Jobs opened the door for the Fed — inflation decides whether it walks through

The latest US jobs report did not end the debate over the Federal Reserve’s (Fed) next move. It may have done something more subtle: it gave policymakers permission to keep their options open. After months of softer labour market signals, August delivered a stronger-than-expected rebound.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.