- WTI picks up bids to consolidate daily losses, looks set for the consecutive second weekly loss.
- US dollar rebound, hawkish central banks test oil buyers.
- US Energy Secretary calls emergency meeting of oil refiners during the next week.
- Russia hints at further oil supplies while also confirming market’s uncertainty.
WTI crude oil price fades the previous day’s bounce off a two-week low as sellers attack $114.00 during Friday’s Asian session.
The black gold cheered mixed updates on oil markets and a softer US dollar to rebound the previous day. However, chatters surrounding the US Energy Secretary Jennifer Granholm’s meeting with the oil refiners during the next week join the US dollar’s recovery ahead of a speech from the Fed Chairman Jerome Powell to weigh on the quote of late.
That said, Russia’s readiness to increase oil production in July joins the nation’s determination to keep the oil-for-roubles scheme to keep oil buyers hopeful. Though, Russian Deputy Prime Minister Alexander Novak’s comments like, “Oil market is balanced but there are lots of uncertainties,” seem to probe the commodity prices of late.
Elsewhere, US Dollar Index (DXY) takes the bids to refresh its intraday high around 104.00 while posting the first daily gain in three. In doing so, the greenback gauge bounces off the weekly low by paring the biggest daily fall in a month, flashed the previous day.
Downbeat US Treasury yields joined softer US data to weigh on the US dollar prices and helped trigger the WTI’s rebound.
US 10-year Treasury yields dropped during the last two consecutive days, to 3.243% at the latest as the Fed’s 0.75 rate increase couldn’t impress bulls. On the other hand, US Building Permits and Housing Starts eased in May to 1.695M and 1.549M respectively while the Initial Jobless Claims 4-week average inched up to 218.5K versus 215K expected during the period ended on June 10. Further, Philadelphia Fed Manufacturing Survey printed a negative figure of -3.3 for June, the first such contraction since May 2020.
Looking forward, the US Industrial Production for May, expected at 0.4% versus 1.1% prior, will be the first to entertain traders ahead of the Fed’s Monetary Policy Report and Powell’s speech.
It’s worth noting that the oil refiners are likely to discuss capacity and pricing issues with US President Joe Biden during the next week’s meeting, which in turn can help witness volatile energy markets.
Technical analysis
A first daily closing below the 21-DMA in over a month keeps WTI crude oil sellers hopeful until the quote trades successfully beyond the immediate DMA hurdle surrounding $115.00.
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 edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.