Created
: 2024.04.25
2024.04.25 05:18
West Texas Intermediate (WTI) US Crude Oil slipped back slightly on Wednesday, stumbling away from $83.50 per barrel to trade down to $82.50 as broad-market risk appetite from Tuesday evaporates in the mid-week market session. Despite easing buying pressure in barrel markets, Crude Oil declines remain limited after US barrel counts declined on a week-on-week basis.
The Energy Information Administration (EIA) reported a -6.368M barrel decline in US barrel counts for the week ended April 19, missing the forecast uptick of 1.6M and erasing the previous week's 2.735M buildup. The EIA's reported decline in Crude Oil stocks adds to the reported inventory decline from the American Petroleum Institute (API) late Tuesday, which showed a -3.23M barrel drawdown for the same period, also missing a forecast 1.8M buildup and eating away at most of the previous week's increase of 4.09M barrels.
Declining US barrel stocks are helping to balance out broad-market risk aversion flows as commodities take a hit on Wednesday. Volatility is on the rise and investors are turning to Thursday's upcoming US Gross Domestic Product (GDP) print. Markets desperate for any signs of a US Federal Reserve (Fed) rate cut over the horizon are hoping that the US' quarterly GDP results for Q1 will ease back to at least 2.5% compared to the previous print of 3.4%.
This week will wrap up with another print of the US Personal Consumption Expenditure (PCE) Price Index inflation metric. Core US PCE MoM in March is expected to hold steady at 0.3%, and rate-cut-hungry market participants are looking for further signs of inflation weakness. At current cut, the Fed is expected to deliver a first rate cut in September, well later than the March rate cut that was expected back in December.
WTI continues to get hung up on the 200-hour Exponential Moving Average (EMA) near $83.00, hampering topside momentum in the near-term as barrel bids continue to look for bullish bounces from the $81.00 region. Intraday barrel bidding remains significantly down from recent highs near $87.00, but further downside momentum will need to break below $80.00 before pushing lower.
Daily candles remain on the high side of the 200-day EMA at $79.11, and despite recent bearish pulldown, Crude Oil remains well up from 2024's early lows near $70.00 per barrel.
Created
: 2024.04.25
Last updated
: 2024.04.25
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