- WTI’s consolidates the pullback from the highest since September 04 with its latest U-turn from $41.13.
- API Weekly Crude Oil Stock grew to 0.584M versus -5.42M prior during the week ended on October 16.
- Markets anticipate a bearish statement from the oil producers after IMF’s downbeat forecasts.
- EIA inventories, risk catalysts can entertain oil traders.
WTI refrains to extend the late-US session losses while picking up the bids around $41.30 during the pre-Tokyo open Asian trading on Wednesday. The oil benchmark rose to the highest since September 04 the previous day, before stepping back to $41.13 on downbeat inventory data from the American Petroleum Institute (API). However, broad US dollar weakness and cautious optimism in the market seem to have favored the bulls.
API inventories failed to repeat the previous week’s surprise draw of 5.42 million barrels as the industry data marked the addition of 0.584 million barrels of stockpiles in its latest release. The data offered oil traders the much-needed pullback from the multi-day high.
The pullback also gained momentum amid the International Monetary Fund’s (IMF) latest economic forecast for the Middle East and Central Asia. The Washington-based institute recently predicted a 4.1% contraction for the region following its earlier fears of -2.8% GDP. This challenges the global output cut agreement between the leading producers and Russia.
Even so, cautious optimism concerning the US coronavirus (COVID-19) stimulus and weak US dollar favors the energy bulls. Although US House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin couldn’t break the relief talk stalemate by the previously hailed deadline of Tuesday-end, the latest comments from the Congress suggest both sides are nearer to a deal. This reduces the greenback’s safe-haven demand and keeps the US dollar index (DXY) near the lowest in a month.
With the private inventories flashing downbeat numbers, the official figures from the Energy Information Administration (EIA) are also expected to recede from -3.818M previous readouts to -0.24M during the week closed on October 16. The same can offer another drag to the commodity prices, in addition to the fears of oil demand, but could be ignored if US policymakers can unveil the much-awaited stimulus.
Oil prices need to stay beyond the late-September top around $41.75 to keep the bulls directed towards the August 24 low closet to $42.30, failing to do so can drag the quote back to the monthly support line near $40.70. It should, however, be noted that the 200-day EMA level of $41.30 can offer immediate support to the black gold.
Additional important levels
|Today last price||41.35|
|Today Daily Change||0.39|
|Today Daily Change %||0.95%|
|Today daily open||40.96|
|Previous Daily High||41.48|
|Previous Daily Low||40.8|
|Previous Weekly High||41.56|
|Previous Weekly Low||39.31|
|Previous Monthly High||43.56|
|Previous Monthly Low||36.43|
|Daily Fibonacci 38.2%||41.06|
|Daily Fibonacci 61.8%||41.22|
|Daily Pivot Point S1||40.68|
|Daily Pivot Point S2||40.4|
|Daily Pivot Point S3||40|
|Daily Pivot Point R1||41.36|
|Daily Pivot Point R2||41.75|
|Daily Pivot Point R3||42.03|
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.