|

WTI steadies below $72.00 amid jittery markets, US Dollar’s retreat amid fears of US default

  • WTI crude oil consolidates the biggest daily loss in three weeks.
  • Mixed sentiment about US debt ceiling deal, Oil demand-supply concerns prod energy traders.
  • Cautious mood ahead of the key data/events also restricts immediate WTI moves.
  • US data, OPEC+ meeting eyed for directions, US debt ceiling updates are key.

WTI crude oil prints mild gains around $72.00 as it pares the previous day’s losses, the biggest in three weeks, heading into Friday’s European session. In doing so, the black gold struggles to justify a retreat in the US Dollar price amid mixed sentiment. Also troubling the Oil benchmark traders are mixed concerns about the demand-supply matrix of the WTI crude oil.

That said, the market sentiment dribbles as US policymakers’ inability to clinch a deal on the US debt ceiling extension contrasts with the chatters suggesting a $70.0 billion gap left to be filled by the negotiators to get the much-awaited deal. Recently, US House Speaker Kevin McCarthy announced no agreement on the debt deal, as well as the continuation of talks by saying, “It’s hard. But we’re working and we’re going to continue to work until we get this done.”

It’s worth noting that the unimpressive tone of the Federal Reserve (Fed) officials, despite upbeat US data, prods the US Dollar bulls ahead of another round of key statistics, also allowing the Oil sellers to take a breather.

Elsewhere, Russian Deputy Prime Minister Alexander Novak said on Thursday, “I do not see new steps at the June 4th OPEC+ meeting.” Russia’s Novak also added that he sees Brent above $80/bbl by year-end, $77 at the latest.

Against this backdrop, US stock futures print mild losses while the US Dollar Index retreat from a two-month high and the yields dribble near the highest levels since March. All of it portrays mixed sentiment and challenge the Oil price.

Looking ahead, the key data including the US Durable Goods Orders for April and the Core Personal Consumption Expenditure (PCE) Price Index for the said month, known as the Fed’s preferred inflation gauge, can direct intraday traders. However, major attention will be given to the next week’s OPEC+ meeting and US debt ceiling updates.

Technical analysis

WTI crude oil grinds higher within a two-month-old rising support line and the 50-DMA, around $71.65 and $74.60 in that order. 

Additional important levels

Overview
Today last price71.9
Today Daily Change0.07
Today Daily Change %0.10%
Today daily open71.83
 
Trends
Daily SMA2072.13
Daily SMA5074.51
Daily SMA10076
Daily SMA20079.71
 
Levels
Previous Daily High74.36
Previous Daily Low71.03
Previous Weekly High73.55
Previous Weekly Low69.39
Previous Monthly High83.4
Previous Monthly Low73.88
Daily Fibonacci 38.2%72.3
Daily Fibonacci 61.8%73.09
Daily Pivot Point S170.45
Daily Pivot Point S269.08
Daily Pivot Point S367.12
Daily Pivot Point R173.79
Daily Pivot Point R275.74
Daily Pivot Point R377.12

Author

Anil Panchal

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

More from Anil Panchal
Share:

Editor's Picks

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading 

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.