- WTI struggles to keep bears on the table while snapping two-day winning streak.
- API Weekly Crude Oil Stock marked unexpected build of inventory during the week ended on March 17.
- US Oil refiners’ optimism, softer US Dollar ahead of the Fed keeps buyers hopeful.
- Federal Reserve, EIA stockpiles eyed for clear directions.
WTI crude oil picks up bids to pare intraday losses, the first in three, amid early Wednesday’s sluggish trading. That said, the black gold dropped during the initial hours after downbeat inventory data joined the US Dollar’s corrective bounce and price-negative industry news. However, the greenback’s failure to stay firmer and cautious optimism in the market seem to help the energy benchmark as it prints mild losses near $69.30 at the latest.
On Tuesday, the private Oil inventory data provider American Petroleum Institute (API) showed the Weekly Oil Stock increased by 3.262M for the week ended on March 17 versus 1.155M prior.
Apart from the higher inventory levels, the US Dollar’s corrective bounce, backed by an initial rebound in the US Treasury bond yields, also favored the WTI crude oil sellers after a two-day uptrend.
Furthermore, a lack of impressive news from China President Xi Jinping’s meeting with Russian counterpart Vladimir Putin, despite criticizing the Western helps to Ukraine, seems to exert downside pressure on the Oil price.
Additionally, news from Reuters suggesting optimism in the US oil refining industry also tease the WTI bears. “The US oil refining industry expects to maintain a competitive advantage exporting fuel to Latin America, even though Brazil has started to import more Russian diesel, according to an official at a top US refining lobby,” said Reuters.
Above all, the market’s indecision ahead of the Federal Open Market Committee (FOMC) monetary policy meeting challenges WTI traders. Also important to watch is the weekly Crude Oil inventory data from the US Energy Information Administration (EIA), up for publishing on Wednesday and expected -1.448M versus 1.55M prior.
Technical analysis
December 2022 low near $70.30 precedes a two-week-old descending resistance line, around $71.40, to restrict Crude Oil upside.
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
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.