WTI: Supply cut concerns please buyers with $57, sellers await API, EIA data

WTI traders near $57.00 during initial trading hours on Tuesday.
The quote strengthened recently as supply cut concerns from OPEC remain in command.
Weekly inventory levels will be next for traders to follow.

Anil Panchal FXStreet

WTI trades above $57.00 for the first time in over a week during early Tuesday. The energy benchmark gained traction as weekend comments from Saudi Arabia seems to prove right after recent statements from the OPEC secretary. Energy traders may now await weekly inventory details from API and EIA in order to determine near-term trade direction.

During the weekend, Saudi Arabia showed readiness to extend deeper than the agreed supply cut in April. The news report gained further support from weekly US drilling sector activity report published by Baker Hughes that said a number of rigs drilling for new oil production in the US fell by nine to 834.

On late-Monday, OPEC Secretary Mohammed Sanusi Barkindo spoke at an energy conference in Houston. The cartel authority said that the on-going supply adjustments will continue through 2019 and the rebalancing of the global oil market is a work in progress. The comments back the latest news from Saudi Arabia and pleased buyers.

Though weekly crude inventory levels are still left for publishing and become a reason to worry. First among them will be private industry survey on oil stock from the American Petroleum Institute (API) on late-Tuesday. Following that, official oil stock change from Energy Information Administration (EIA) for the week ending on March 04 will be closely watched. While API registered 7.29M figure during the prior week, EIA numbers were at 7.069M.

WTI Technical Analysis

Break of $57.00 enables the energy benchmark to aim for $57.80 and 58.00 during further advances.

$56.60 and $56.10 can offer immediate support in case prices slip under $57.00

Author

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.

GBP/USD back to 1.3250, down modestly for the day

GBP/USD now comes under fresh downside pressure and recedes toward the mid-1.3200s on Tuesday, partially reversing the optimism seen at the beginning of the week. Meanwhile, Cable’s bearish tone follows the resumption of the upside traction in the Greenback, always amid the sharp rally in USD/JPY.

EUR/USD looks inconclusive in the low 1.1400s

EUR/USD alternates gains with losses in the 1.1420 region in the latter part of the NA session on turnaround Tuesday. The pair’s vacillating price action comes amid the lack of clear direction in the US Dollar. Meanwhile, market participants are expected to gear up for the upcoming key releases on the US docket and developments from the ECB Forum in Sintra.

Gold clings to daily gains beyond $4,000

Following multi-month lows near $3,950, Gold now manages to regain some composure and reclaim the area beyond the key $4,000 yardstick per troy ounce on Wednesday. Still, any meaningful recovery appears limited as a broadly firmer US Dollar and rising US Treasury yields weigh on the yellow metal.

Coinbase, BlackRock, Visa and Stripe support Open Standard’s OUSD stablecoin

Open Standard on Tuesday unveiled Open USD (OUSD), a dollar-pegged stablecoin designed for global payments, backed by more than 140 companies. The founding coalition spans payment networks, banks, fintech firms, technology platforms and crypto infrastructure providers, including Shopify, Google, Ripple, Solana, Coinbase, Visa, Mastercard, Stripe, BlackRock and BNY.

Why a hawkish Bank of Japan could trigger the next Bitcoin sell-off

The Japanese Yen hits a 40-year low of 162.00 against the US Dollar, raising concerns about intervention or additional rate hikes by the Bank of Japan. BoJ may sell US Treasuries to buy back Yen, potentially pushing US bond yields higher and making Bitcoin less attractive to investors.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.