- WTI turns lower and watches closely at $77.50.
- The US CPI makes the dollar a late offer.
US crude prices They add to previous declines, falling after the US Consumer Price Index data and during the Wall Street open. West Texas Intermediate oil is down 1.4% on the day as of this writing, slightly above the lows around $77.69 per barrel, but well below the highs of $79.80 per barrel.
The US inflation report was somewhat more bullish than expected, raising some concerns about future oil and fuel demand in the world’s most oil-consuming country. Overall though, the Fed swaps indicate that the 2023 forward funds rates won’t change much as a result, which had initially caused some softness in the US dollar.
Before the data was released, markets had expected the Fed’s target rate to peak at 5.188% in July, from the current range of 4.5% to 4.75%. Fed Funds Futures now forecasts a top Fed Funds rate of 5.5%-5.25% for July, versus previous almost even odds for a higher Fed Funds rate. However, the dollar rose as markets began to digest the data, which also affected the price of oil.
The US Consumer Price Index has been in line with expectations for the month-on-month data of 0.4%. For its part, the annual CPI for January stood at 6.4%, compared to the 6.2% forecast.
It’s also worth noting that analysts at TD Securities explained that “CTA trend followers are marginally adding back to their short positions in Brent crude after reports of congressionally mandated sales of SPR soured sentiment in the complex.” of energy”.
RBOB Gasoline is taking the brunt of CTAs as current prices point to a major sell-off program equal to -9% off the cohort’s all-time high position. Still, the trend in time spreads points to a tighter physical market on the horizon, as evidence of a boom in demand from China’s reopening becomes apparent on the go.”
WTI Technical Analysis
Price is falling to the key support zone that watches for a move towards $77.00bbls. The ATR is $2.50, which gives room to go further down.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
