The price of WTI crude oil is trading around .20, dropping to its lowest level in seven weeks due to a surprise build in US crude inventories and easing geopolitical tensions in the Middle East.
The benchmark US crude oil Western Texas Intermediate (WTI) is trading higher around .60 on Friday due to potential geopolitical risk from a looming Israeli invasion of the southern Gaza city of Rafah.
– WTI fell below .00 per barrel before recovering above .00.
– US Purchasing Managers Index (PMI) figures were softer than expected.
– Crude oil markets are exposed to downside moves as geopolitical tensions ease.
– US GDP figures are expected to ease to 2.5% from the previous 3.4%.
– The PCE Price Index inflation data is forecast to hold steady at 0.3% MoM.
– WTI crossed .00 per barrel and rallied above the 200-hour EMA.
– Despite the rally, WTI is down around 4.5% from April’s swing highs near .00 per barrel.
The West Texas Intermediate (WTI) futures dropped to .00 due to weak demand outlook and expectations of the Federal Reserve keeping interest rates higher. The Fed’s confidence in price pressures declining to 2% has been dented by higher consumer price inflation and strong labor market data. Expectations of higher crude oil inventories and fears of oil supply tightening due to Iran’s attack on Israel have also impacted the oil price. Treasury Secretary Janet Yellen mentioned the possibility of new sanctions on Iran, which could affect their oil exports.
European stocks were on track to outperform Wall Street on Friday due to high demand for exporter shares as major currencies in the continent dropped against a strong dollar.
The text discusses the current struggles of West Texas Intermediate (WTI) crude oil prices, which are being supported by concerns about the Middle East crisis. Despite potential supply risks, a substantial rise in US crude inventories and signs of cooling fuel demand are capping the upside for oil prices. Additionally, hotter US consumer inflation figures have led investors to push back expectations for an interest rate cut by the Federal Reserve. Traders are now looking to US economic data and speeches by FOMC members to drive USD demand and influence crude oil prices.
The West Texas Intermediate (WTI) oil price is trading around .20 a barrel in Asian trading on Friday, with the rise attributed to potential supply disruptions amid escalating geopolitical tensions.
– WTI is trading around .50 on Wednesday
– US Dollar recovery and surprise jump in U.S. crude and gasoline stocks are affecting WTI prices
– Fed Governor Christopher Waller’s hawkish comments are impacting the Greenback
– US crude oil inventories rose by 3.165 million barrels
– Geopolitical tensions in the Middle East and Russia-Ukraine war could tighten worldwide supply
– OPEC+ decided to extend output cuts until the end of June
– Oil traders will watch US GDP and PCE Price Index data for market direction