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    Crude Oil looks for the ceiling on Friday as WTI tests $78.00

    Source Fxstreet
    Jan 26, 2024 19:16
    • Crude Oil markets jumped again on Friday, testing two-month highs.
    • WTI tips back into $78.00, up over 7.5% in 2024.
    • Energy markets are tilted heavily into net long positions.

    West Texas Intermediate (WTI) US Crude Oil bid into a two-month high north of 78$.00 per barrel on Friday as barrel traders pile into long bets on continuing geopolitical concerns and near-term supply constraints. Crude Oil prices have skewed to the high side this week after a dogpile into long trades leaves markets exposed to an exacerbated pullback if further net long positions can’t be pulled into the order books.

    A cold snap in the US last week temporarily crimped supply lines, adding to a drawdown in US Crude Oil stocks according to reporting by the Energy Information Administration (EIA) this week. EIA barrel counts showed a 9.233 million barrel drawdown in the US for the week ended January 19, adding to the previous week’s drag of 2.492 million barrels. Despite another buildup in refined gasoline adding to already-burgeoning gasoline supplies, energy markets are broadly focusing on the potential for ongoing Crude Oil supply constraints.

    Iran-backed Houthi rebels in Yemen launched a fresh attack against US and UK naval targets on Friday, exacerbating Crude Oil jitters despite no reports of significant damage. The Houthis continue to threaten civilian cargo ships bound for the Suez Canal, and nearly ten strikes by coalition naval forces within three weeks have yet to quell Houthi aggression.

    According to reporting by Bloomberg, citing Dan Ghali of TD Securities, algorithmic trend followers have pivoted into net long positions with Crude Oil traders net long WTI by around 30%,

    WTI Crude Oil Technical Outlook

    WTI caught an intraday rebound off the 50-hour Simple Moving Average (SMA) near $76.00 on Friday, and US Crude Oil is up nearly 2.5% on the day. The near-term technical floor is priced in at the 200-hour SMA just north of the $74.00 handle.

    Daily candlesticks have WTI testing into the 200-day SMA near 77.25, with oil bids climbing and setting WTI on pace to close in the green for a sixth of the last eight trading session.

    WTI Hourly Chart

    WT Daily Chart

     

    Disclaimer: For information purposes only. Past performance is not indicative of future results.
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    Gold hits new yearly high as US yields drop on mixed US manufacturing dataGold price soars to a new year-to-date high of $2,088.33 in Friday’s North American session, following the release of mixed economic data, as S&P Global revealed the economy in the United States is expanding.
    Source  Fxstreet
    Gold price soars to a new year-to-date high of $2,088.33 in Friday’s North American session, following the release of mixed economic data, as S&P Global revealed the economy in the United States is expanding.
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    WTI rebounds to near $78 ahead of crucial US inflation readingsWest Texas Intermediate (WTI), futures on NYMEX, is up 0.28% in Thursday’s European session after a strong recovery from $77.60 ahead of key United States Personal Consumption Expenditure Price Index (PCE) for January, which will be published at 13:30 GMT.
    Source  Fxstreet
    West Texas Intermediate (WTI), futures on NYMEX, is up 0.28% in Thursday’s European session after a strong recovery from $77.60 ahead of key United States Personal Consumption Expenditure Price Index (PCE) for January, which will be published at 13:30 GMT.
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    Crude Oil rose again on Wednesday, but WTI found friction at $79.00West Texas Intermediate (WTI) US Crude Oil found further room on the top end on Wednesday, briefly climbing above $79.00 before getting pulled back down by another surprise buildup in US Crude Oil inventories according to the Energy Information Administration (EIA).
    Source  Fxstreet
    West Texas Intermediate (WTI) US Crude Oil found further room on the top end on Wednesday, briefly climbing above $79.00 before getting pulled back down by another surprise buildup in US Crude Oil inventories according to the Energy Information Administration (EIA).
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