WTI: Mildly positive around $25.50 amid US dollar weakness, geopolitics
- WTI extends recovery gains as the US dollar weakness helps the commodities.
- Efforts are being made between the US and Saudi Arabia to maintain oil prices.
- The US stockpiles also registered draw.
- Two rockets fired on the US embassy in Baghdad.
With the US dollar weakness joining hands with the price-positive inventory data, not to forget the US-Saudi efforts to placate the bears, WTI stretches recovery gains to $25.50, up 1.75%, during the early Thursday.
The US dollar seems to bear the burden of uncertainty concerning its $2.2 trillion COVID-19 Bill. The reason could be traced from the Democrats’ disappointments from the package, as per the CNN correspondent’s tweet, which didn’t include some of their terms.
The weekly US Crude Oil Stocks Change from the Energy Information Administration (EIA) followed the footsteps of the earlier released industry figures from the American Petroleum Institute (API). The official data suggested the US crude oil supplies went up by 1.623M barrels during last week, adding to the previous 1.954M barrel build.
Also positively affecting the energy prices could be the US-Saudi Arabian alliance to restore the oil market as well as the latest strike on the US embassy in Baghdad.
Investors could pay a little heed to the economic calendar considering the absence of oil-related events. However, the US Jobless Claims and the final reading of the fourth quarter (Q4) GDP might offer intermediate moves.
Technical analysis
Unless breaking the weekly support trend line, currently near 24.00, WTI continues to accelerate towards the fortnight-old falling resistance line, now around $26.80.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
