- WTI retreats from near $54 amid profit-taking, covid woes.
- DXY’s bounce also caps API stocks draw-led upsurge.
- Next of note remains EIA crude stocks data and covid updates.
WTI (futures on NYMEX) retreats from a new 11-month high of $53.93 reached earlier in the Asian session but holds above the $53 mark ahead of the official US weekly crude stock data.
The ongoing rally in the black gold received a fresh boost after the American Petroleum Institute (API) reported a massive inventory draw in its weekly crude stocks change data published late Tuesday. The API data showed that the US crude inventories fell by 5.8 million barrels last week vs. the -1.663 million drawdown seen before.
Further, the retreat in the US dollar led by the corrective decline in the US Treasury yields also aided the upside in oil. Strong demand for the US bonds in the government bonds on Tuesday, triggered the sell-off in the Treasury yields across the curve. A weaker greenback makes the USD denominated oil cheaper for foreign buyers.
However, the US oil eased from multi-month highs on Wednesday amid a profit-taking slide after facing rejection at the $54 threshold. Further, intensifying concerns over the coronavirus growth worldwide threaten economic recovery prospects, weighing negatively on the higher-yielding oil.
Additionally, the greenback also seems to have caught a fresh bid-wave on covid fears-led risk-aversion, limiting the additional gains in the WTI barrel. Investors also await the US Energy Information Administration’s (EIA) weekly crude inventories for the next direction on the prices.
WTI technical levels
As the US oil retreats, “late-2019 lows near 51.00 can easily restrict pullback moves, sellers may avoid entries unless witnessing a clear break below an ascending trend line from November 02, at $49.15 now,” FXStreet’s Analyst Anil Panchal noted.
WTI additional level
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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.