fxs_header_sponsor_anchor

News

WTI bears step it up and push back against corrective efforts

  • West Texas Intermediate (WTI) is on the back foot, although risks continue to cascade across the energy complex.
  • US oil inventories rose last week, but the black gold bleeds. 

West Texas Intermediate (WTI) spot is down some 1.25% in Asia but had ended in the North American futures markets with a small gain on Wednesday following a report that US oil inventories rose last week. At the time of writing, the black gold is trading at $100.71 spot and has fallen from a high of $102.08bbls to a low of $110.63bbls. 

West Texas Intermediate crude for June delivery settled up US$0.32 to US$102.02 per barrel with the focus has been on Russia's suspension of natural-gas deliveries to Bulgaria and Poland. This has raised concerns over the use of its energy exports as a weapon while the two countries declined to pay for the shipments in rubles despite Russian demands.

''While the flows into Germany via the Yamal-Europe pipeline have routinely been at zero since mid-December, reductions to other customers can add further pressures on an energy system already under extreme pressure,'' analysts at TD Securities explained. 

''Furthermore, four countries have already paid in rubles and ten firms have opened accounts to meet the requirements. Europe also plans to temporarily increase purchases via these avenues to offset lost flow to Poland and Bulgaria, suggesting the fundamental impact may be muted for now, although risks to the region continue to grow,'' the analysts added.

''These risks will continue to cascade across the energy complex, as noted by a record surge in heating oil prices as shortages wreak havoc around the globe.''

Meanwhile, US oil inventory data showed an increase of 0.692mbbl. This was lower than the expected increase of 2mbbl. Gasoline inventories dropped by 1.573mbbl against expectations of 0.89mbbl build up. ''Further, US oil companies are signalling they will raise oil production from the US shale basin, which could see production ramping up by end of this year,'' analysts at ANZ Bank said. 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.