Created
: 2024.04.23
2024.04.23 09:24
Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $82.00 on Tuesday. The black gold edges lower on the day as the concerns about a wider Middle East war fade. Later on Tuesday, oil traders will take more cues from the preliminary US S&P Global Purchasing Managers Index (PMI) data for April and the API Weekly Crude Oil Stock report.
Iranian Foreign Minister Hossein Amirabdollahian said on Friday that Iran does not plan to respond to Israel's retaliatory strike launched, while Israeli authorities remained mostly silent. The absence of public statements afterward tends to imply that both sides are attempting to ease tensions. WTI prices drop to nearly monthly low as Israel's retaliatory attack on Iran was smaller than had been feared. However, any escalating tensions between Israel and Iran could limit the WTI's downside from its lower price levels.
The increase in US crude oil inventories in recent weeks surpassed expectations, which exerts downward pressure on WTI prices. Furthermore, the hawkish remarks from the Federal Reserve (Fed) have led to a strong US Dollar (USD) and acts as a headwind for the black gold price. It's worth noting that a strong dollar makes oil more expensive for holders of other currencies. Chicago Fed Austan Goolsbee said last week that with the strength of the labour market and elevated inflation, he believes the Fed's current restrictive monetary policy is appropriate, per Reuters.
On the other hand, hope for Chinese demand might offer some relief to WTI prices as China is the world's biggest oil importer. The Chinese government aims to accomplish this with the help of fiscal and monetary stimulus measures to lift the economy. ANZ economists expected China's economy to grow 4.9% in 2024, up from 4.2% previously. However, the Chinese property sector remains fragile and it has been a major drag on China's economy. Any negative sign about China's economy could weigh on the WTI prices.
Created
: 2024.04.23
Last updated
: 2024.04.23
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy