- WTI extends Wednesday’s run-up towards a one-month-old falling trend line.
- Hopes of US stimulus keep market sentiment positive, US dollar weakness adds strength into commodities.
- Key indicator from the big data company suggests oil market recovery.
- Widespread job losses in the US and the UK join virus woes to tame the bulls.
WTI takes the bids near $41.41, up 1.14% intraday, while heading into Thursday’s European session open. The energy benchmark cheers broad weakness of the US dollar, as well as hopes of American stimulus, while stretching the previous day’s gains. It should also be noted that the surprise draw in the official oil inventories, shared by the Energy Information Administration (EIA), as well as an increase in the North American Frac Spread Count, also favor the black gold prices.
The US dollar index (DXY) drops 0.16% on a day to 93.68 by the time of the press as global markets turn risk-positive amid hopes of further stimulus. Not only the US Congress but the Japanese government is also up for another liquidity boost to avoid negative economic impacts of the coronavirus (COVID-19).
Elsewhere, numbers from the big data company Primary Vision suggest that the North American Frac Spread Count, which tracks the fracking completion crews currently finishing off wells, surged 101 from 12 last week.
Additionally, the EIA Crude Oil Stocks Change for the week ended on September 25 also marked a surprise draw on Wednesday. The weekly official stockpiles slipped below +1.569M forecast and -1.639M prior to -1.98M during the reported period.
On the contrary, job cuts by the American entities like Disney, Goldman Sachs and Allstate join updates suggesting 7,500 job loss to the UK due to the Brexit to challenge the oil demand. Furthermore, chatters concerning Britain’s nearness to national lockdowns, due to the virus, are an extra burden on the commodity prices.
Moving on, traders will keep eyes on the US ISM Manufacturing PMI for fresh impulse as a recovery in the important manufacturing activity gauge indicates upbeat demand going forward. Forecasts suggest the September month data cross 56.0 prior levels with the 56.3 mark.
Unless breaking the monthly resistance line, currently around $40.55, oil buyers are less likely to target September 18 top surrounding $41.75. As a result, sellers targeting the weekly low of $38.53 remain hopeful on the quote’s break below the $40.00 threshold.
Additional important levels
|Today last price||40.43|
|Today Daily Change||0.46|
|Today Daily Change %||1.15%|
|Today daily open||39.97|
|Previous Daily High||40.47|
|Previous Daily Low||38.8|
|Previous Weekly High||41.51|
|Previous Weekly Low||38.92|
|Previous Monthly High||43.56|
|Previous Monthly Low||36.43|
|Daily Fibonacci 38.2%||39.84|
|Daily Fibonacci 61.8%||39.44|
|Daily Pivot Point S1||39.02|
|Daily Pivot Point S2||38.08|
|Daily Pivot Point S3||37.35|
|Daily Pivot Point R1||40.69|
|Daily Pivot Point R2||41.42|
|Daily Pivot Point R3||42.37|
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.