WTI plunges to near $75.0 following a larger increase in US Crude Oil Stockpiles


  • WTI price loses ground larger-than-expected US oil inventories.
  • US EIA Crude Oil Stocks Change rose by 12.018 million barrels to 439.5 million barrels.
  • Crude oil prices face challenges as IEA downward revised forecast of the global oil demand growth.

West Texas Intermediate (WTI) Crude oil price declined following a larger-than-anticipated increase in US Crude Oil Stockpiles, which raised concerns about the demand outlook in the United States (US), the world's largest consumer of Crude oil products. As a result, the WTI price extended its losses, reaching around $75.90 per barrel during the European trading session on Thursday.

US Energy Information Administration showed that Crude Oil Stocks Change rose by 12.018 million barrels to 439.5 million barrels for the week ending on February 9. The market was expecting an increase of 2.56 million barrels against the previous change of 5.521 million barrels.

Crude oil prices are under pressure following the International Energy Agency's (IEA) downward revision of the global oil demand growth forecast for 2024 in its latest monthly oil market report released on Thursday. The forecast for 2024 global oil demand growth has been reduced to 1.22 million barrels per day (bpd), down from the previous estimate of 1.24 million bpd.

The slowdown in global oil demand growth could be attributed in part to developments in China. The report highlights a tightening of oil market balances in January, primarily due to supply disruptions in the United States and Canada. Despite ongoing cuts by OPEC+ nations, the IEA expects a slight build in inventories in the first quarter of the year.

Kazakhstan and Iraq have committed to addressing their oil overproduction over the next four months, aligning with their, Organization of the Petroleum Exporting Countries and its allies (OPEC+), agreements for voluntary cuts. Analysts at ANZ noted on Thursday that attention is turning towards the upcoming March meeting of the OPEC+ will deliberate on whether to extend output curbs.

WTI US OIL: technical levels to watch

Overview
Today last price 75.93
Today Daily Change -0.40
Today Daily Change % -0.52
Today daily open 76.33
 
Trends
Daily SMA20 75.4
Daily SMA50 73.55
Daily SMA100 77.16
Daily SMA200 77.38
 
Levels
Previous Daily High 78.43
Previous Daily Low 76.12
Previous Weekly High 77.18
Previous Weekly Low 71.46
Previous Monthly High 79.19
Previous Monthly Low 69.41
Daily Fibonacci 38.2% 77
Daily Fibonacci 61.8% 77.55
Daily Pivot Point S1 75.49
Daily Pivot Point S2 74.65
Daily Pivot Point S3 73.18
Daily Pivot Point R1 77.8
Daily Pivot Point R2 79.27
Daily Pivot Point R3 80.11

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD stays below 1.0700 after upbeat US PMI data

EUR/USD stays below 1.0700 after upbeat US PMI data

EUR/USD stays on the back foot and trades in negative territory below 1.0700 as the US Dollar benefits from upbeat data in the American session. S&P Global reported that the economic activity in the US private sector continued to expand at a robust pace in June.

EUR/USD News

GBP/USD drops to fresh multi-week low below 1.2650

GBP/USD drops to fresh multi-week low below 1.2650

GBP/USD remains under bearish pressure and trades at its lowest level since mid-May below 1.2650. The stronger-than-forecast Manufacturing and Services PMI data from the US helps the USD hold its ground and causes the pair to stretch lower.

GBP/USD News

Gold drops below $2,340 as US yields rebound

Gold drops below $2,340 as US yields rebound

Gold loses its traction and trades deep in the red below $2,340 in the second half of the day on Friday. The benchmark 10-year US Treasury bond yield pushes higher following the upbeat PMI data from the US, weighing on XAU/USD.

Gold News

Bitcoin retraces to crucial support

Bitcoin retraces to crucial support

Bitcoin price encounters resistance at weekly highs before retracing to seek support at a crucial level, while Ethereum and Ripple align closely with Bitcoin's movements, gearing up to surpass resistance barriers and embark on upward rallies.

Read more

Week ahead – US PCE inflation the highlight of a relatively light agenda

Week ahead – US PCE inflation the highlight of a relatively light agenda

Core PCE inflation to test bets of two Fed rate cuts in 2024. Yen awaits BoJ Summary of Opinions, Tokyo CPI. Canadian CPI data also enters the spotlight.

Read more

Forex MAJORS

Cryptocurrencies

Signatures