- TI trades on a softer note near $81.50 on Thursday.
- The high-for-longer rate narrative from the Fed boosts the US Dollar.
- US crude oil inventories rose by 3.165 million barrels for the week ending March 22 from a decline of 1.952 million barrels.
Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $81.50 on Wednesday. WTI prices edge lower amid the recovery of the US Dollar (USD) and a surprise jump in U.S. crude and gasoline stocks.
The hawkish comments from US Federal Reserve (Fed) policymaker early Thursday lift the Greenback across the board. The Fed Governor Christopher Waller, one of the most hawkish Fed officials, said that the US central bank is not in a hurry to lower the benchmark interest rate and may need to retain the current rate target for longer than previously expected. A firmer USD weighs on WTI prices as it makes dollar-denominated oil more expensive for holders of other currencies, dampening oil demand.
Additionally, US crude oil inventories rose by 3.165 million barrels for the week ending March 22 from a decline of 1.952 million barrels, according to the Energy Information Administration (EIA). A surprise US crude inventories build also contributed to the pressure on WTI prices.
On the other hand, the escalating geopolitical tensions in the Middle East and between Russia and Ukraine could raise the fear of tighter global supply and cap the downside of WTI prices. Ukraine has been striking Russia’s oil infrastructure since the start of the conflict but intensified its attacks in late 2023. There have been seven drone attacks this month alone, and experts estimate that the disruptions have impacted almost 12% of Russia’s total oil processing capacity.
The Organisation of Petroleum Exporting Countries and its allies (OPEC+) decided to extend output cuts of around 2.2 million bpd until the end of June. OPEC+ is expected to affirm its production cuts policy until a full ministerial meeting in June.
Oil traders will watch the US Gross Domestic Product Annualized (GDP) for the fourth quarter (Q4) on Thursday, which is estimated to remain steady at 3.2%. On Friday, the US Personal Consumption Expenditures Price Index (PCE) data for February and Fed’s Powell will be in the spotlight.
News & Analyses
Nasdaq 100, Dow and Dax Continue to Rebound
British Pound (GBP) Latest – BoE Policymaker Warns on Inflation, GBP/USD Analysis
Bitcoin (BTC) Testing Technical Resistance, Gold (XAU) Nudging Higher
FTSE 100, S&P 500 and Nikkei 225 continue to push higher
RBA Governor Stresses Optionality amid Risks to Inflation and Growth
Nasdaq 100 and Dow struggle but Dax moves higher
Japanese Yen Latest – USD/JPY Stable as Japanese Rate Hike Bets Pushed Back
WTI turns red near $81.50 on Fed’s hawkish comments, a surprise jump in US crude stockpiles
Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $81.50 on Wednesday. WTI prices edge lower amid the recovery of the US Dollar (USD) and a surprise jump in U.S. crude and gasoline stocks.
The hawkish comments from US Federal Reserve (Fed) policymaker early Thursday lift the Greenback across the board. The Fed Governor Christopher Waller, one of the most hawkish Fed officials, said that the US central bank is not in a hurry to lower the benchmark interest rate and may need to retain the current rate target for longer than previously expected. A firmer USD weighs on WTI prices as it makes dollar-denominated oil more expensive for holders of other currencies, dampening oil demand.
Additionally, US crude oil inventories rose by 3.165 million barrels for the week ending March 22 from a decline of 1.952 million barrels, according to the Energy Information Administration (EIA). A surprise US crude inventories build also contributed to the pressure on WTI prices.
On the other hand, the escalating geopolitical tensions in the Middle East and between Russia and Ukraine could raise the fear of tighter global supply and cap the downside of WTI prices. Ukraine has been striking Russia’s oil infrastructure since the start of the conflict but intensified its attacks in late 2023. There have been seven drone attacks this month alone, and experts estimate that the disruptions have impacted almost 12% of Russia’s total oil processing capacity.
The Organisation of Petroleum Exporting Countries and its allies (OPEC+) decided to extend output cuts of around 2.2 million bpd until the end of June. OPEC+ is expected to affirm its production cuts policy until a full ministerial meeting in June.
Oil traders will watch the US Gross Domestic Product Annualized (GDP) for the fourth quarter (Q4) on Thursday, which is estimated to remain steady at 3.2%. On Friday, the US Personal Consumption Expenditures Price Index (PCE) data for February and Fed’s Powell will be in the spotlight.
Source link
Ethereum dips below $2,300 following August NFP data, JP Morgan weighs in on ETH ETF performance
Bears extend their control, aiming for 87.00
US Dollar holds steady after mixed NFPs
Holds steady as US data leaves Fed rate cut uncertainty
XRP dips to one-month low close to $0.53, Ripple co-founder backs Kamala Harris for US presidential election
US Dollar pops after NFP footnotes are enough to dampen hopes for a 50 basis point rate cut in September
Crypto News
Ethereum exchange reserve shoots up by 163K ETH, here’s what other on-chain metrics indicate
XRP holds gains as Ripple says Ethereum-compatible smart contracts via sidechain
Bitcoin rebounds slightly, trades above $58,000 after a weekend dip
Bitcoin and Ethereum whales accumulate cryptos even as activity slips to 50% of peak 2024 level
Chainlink and Suhoio form a strategic partnership to explore tokenized assets and CBDCs across Asia
Why could BNB rally 13%?
AI tokens report gains, flipping heavy declines last week
News & Analyses Analyses
Ethereum dips below $2,300 following August NFP data, JP Morgan weighs in on ETH ETF performance
...
Bears extend their control, aiming for 87.00
...
US Dollar holds steady after mixed NFPs
...
Holds steady as US data leaves Fed rate cut uncertainty
...
XRP dips to one-month low close to $0.53, Ripple co-founder backs Kamala Harris for US presidential election
...