- WTI edges higher after rising the most in 12 days, bulls keep reins amid supply crunch fears.
- Russia bombards civilian buildings, peace talks ended without any key results.
- OPEC+ is up for increasing oil production by 400K bpd during Wednesday’s meet, US-Iran deal is close as well.
- API data, OPEC JTC update and Russia-Ukraine headlines will entertain traders.
WTI crude oil prices remain sidelined around $95.00 during Tuesday’s Asian session, after posting the biggest daily gains in two weeks.
In doing so, the black gold portrays the oil traders’ indecision ahead of the output verdict by the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, a grouping known as OPEC+. Also important are the headlines covering geopolitical risks emanating from Ukraine.
Recently, negotiations between Russia and Ukraine came and go without any core results, as expected. The diplomats assured further talks during this week but Moscow isn’t ready to step back as Russian troops bombard civilian buildings in Kyiv. On the other hand, Ukraine President Zelenskyy was quoted by Reuters’ reporter Phil Stewart to consider a no-fly zone for Russian missiles, planes and helicopters. The same would push the US to jump into the battle, as signaled earlier by the White House (WH). However, the WH press secretary Jen Psaki on Monday ruled out the idea of using US troops to create a no-fly zone over Ukraine amid the Russian invasion of the eastern European country.
Elsewhere, the Wall Street Journal (WSJ) mentioned that the US and other major oil-consuming nations are considering releasing 70 million barrels of oil from their emergency stockpiles as crude oil prices surge. Also challenging the oil bulls is the nearness of the US-Iran deal on denuclearization. Recently, Tehran's Foreign Ministry spokesman, Said Khatibzadeh, mentioned in a tweet that the deal is close, which in turn will allow Iran to overcome Western sanctions on selling oil.
It’s worth noting that the OPEC Joint Technical Committee (JTC) meeting on Tuesday will pave way for the OPEC+ meeting, starting from Wednesday. “The OPEC technical committee will today discuss the supply agreement ahead of the ministerial meeting on Wednesday. It’s likely to keep its planned 400kb/d increase in output,” said analysts with ANZ ahead of the event.
Other than the geopolitics and OPEC+ decision, China and the US PMIs for February will also be important for short-term WTI crude oil prices traders.
Technical analysis
An upward sloping trend channel from late December, recently between $99.25 and $90.40, keeps WTI crude oil buyers hopeful.
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
Editors’ Picks
AUD/USD falls amid highs US yields, Fed’s tough stance
The Australian Dollar posted losses of 0.23% against the US Dollar on Thursday amid higher US yields that underpinned the Greenback during the day. Wall Street hit new all-time highs but retreated afterward, ending the session with losses.
EUR/USD slipped on Thursday after Greenback pares some losses
EUR/USD eased slightly on Thursday, falling back below 1.0880 as the Greenback broadly recovers losses from earlier in the week. The pair remains up for the trading week, but a late break for the US Dollar is on the cards as investors second-guess the Fed's stance on rate cuts.
Gold loses its bright and tumbles on firm US Dollar, Fed hawkish comments
Gold prices fell in the mid-North American session on Thursday, below $2,390, as US Treasury yields recovered and underpinned the Greenback. Wednesday’s inflation report in the United States sponsored the golden metal rally, but Thursday’s data was a mixed bag, which could likely trigger some profit-taking ahead of the weekend.
LINK price jumps 10% as Chainlink races toward tokenization of funds
Chainlink price has remained range-bound for a while, stuck between the $16.00 roadblock to the upside and $13.08 to the downside. However, in light of recent revelations, the token may have further upside potential.
April CPI: Worst good news ever
The monthly rise in prices based on the Consumer Price Index (CPI) came in slightly lower than projected, sending a wave of euphoria across the financial landscape. The consensus is cooling inflation puts Federal Reserve interest rate cuts back on the table.