WTI drops to near $79.00 ahead of key US economic releases

FXStreet
Updated May 30, 2024 05:46
Mitrade
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■WTI price lost ground as traders adopt risk-averse ahead of EIA crude Oil Stocks Change report due on Thursday.

■OPEC  is expected to opt to maintain supply cuts of 2.2 million barrels per day on June 2.

■Risk aversion preceding US GDP and Core PCE data bolsters the US Dollar, which in turn undermines Oil prices.


West Texas Intermediate (WTI) crude Oil dipped slightly to around $79.00 per barrel in the Asian trading session on Thursday. Traders keep an eye out for the US crude Oil Stocks Change report from the Energy Information Administration later today. Market projections suggested that US energy firms would draw down 1.9 million barrels of crude from storage in the week ending May 24, following the addition of 1.825 million barrels the week before. In the previous week, the API Weekly Crude Oil Stock indicated a decrease of 6.49 million barrels, contrasting with the 2.48 million barrels added in the week prior.


Traders are also awaiting the upcoming meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia (OPEC ), scheduled for June 2. During this meeting, member producers will discuss prolonging voluntary output cuts of 2.2 million barrels per day into the latter half of 2024. It's anticipated that the group will opt to maintain supply cuts.


Hawkish remarks from Minneapolis Fed President Neel Kashkari further fueled concerns about potential rate hikes. Higher interest rates are negatively impacting the US economic outlook, which dampens the WTI price.


Reuters reported that Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, hinted at the possibility of a rate hike. Kashkari remarked, “I don’t believe anyone has completely ruled out the option of increasing rates,” expressing doubts about the disinflationary trend.


The US Dollar's strength is bolstered by rising Treasury yields, driven by investor risk aversion as they adopt a cautious approach prior to the release of US Gross Domestic Product Annualized (Q1) data on Thursday and the Core Personal Consumption Expenditures (PCE) Price Index data scheduled for Friday. With the US Dollar gaining strength, Oil becomes more expensive for countries purchasing it with other currencies.


WTI US OIL


Overview
Today last price 78.98
Today Daily Change -0.13
Today Daily Change % -0.16
Today daily open 79.11
 
Trends
Daily SMA20 78.47
Daily SMA50 81.32
Daily SMA100 78.94
Daily SMA200 79.57
 
Levels
Previous Daily High 80.41
Previous Daily Low 78.82
Previous Weekly High 80.06
Previous Weekly Low 76.04
Previous Monthly High 87.12
Previous Monthly Low 80.62
Daily Fibonacci 38.2% 79.43
Daily Fibonacci 61.8% 79.81
Daily Pivot Point S1 78.48
Daily Pivot Point S2 77.86
Daily Pivot Point S3 76.89
Daily Pivot Point R1 80.07
Daily Pivot Point R2 81.04
Daily Pivot Point R3 81.66

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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