- Crude Oil is pinned into the high end to wrap up the trading week.
- WTI holding above $80.00 per barrel.
- Barrel traders pinning hopes on supply constraints looking forward.
West Texas Intermediate (WTI) US Crude Oil was pinned north of $80.00 per barrel on Friday as energy markets continued to price in expectations of a widening gap between global Crude Oil output and a forecast uptick in global Crude Oil demand through the rest of 2024 and into 2025.
The International Energy Agency (IEA) recently adjusted its forecasts, calling for a global Crude Oil deficit assuming the Organization of the Petroleum Exporting Countries (OPEC) maintains its current voluntary production caps. OPEC will meet next on June 1 to discuss output levels for the second half of 2024, and investors are broadly anticipating the Crude Oil cartel to continue squeezing quotas as tight as possible as Saudi Arabia pushes to keep barrel prices bolstered.
Declines in US Crude Oil supplies sparked a bullish lean in energy markets this week after the American Petroleum Institute (API) and the Energy Information Administration (EIA) both printed deeper drawdowns in Crude Oil stocks than expected after capacity demand at US refineries ticked up.
US Crude Oil supplies drawdown sparks risk bid
The API reported on Tuesday that Weekly Crude Oil Stocks for the week ended March 8 declined 5.5 million barrels, well below the forecast uptick of 400K barrels, engulfing the previous week’s buildup of 4423K barrels. The EIA’s Crude Oil Stocks Change for the same period showed a 1.536 million barrel decline, missing the forecast buidup of 1.338 million barrels and wiping out the previous week’s 1.367 million barrel increase.
WTI technical outlook
WTI is trading into the high end of a supply zone near the $80.00 handle after vaulting over the 200-hour Simple Moving Average (SMA) just above $78.00 earlier this week, and the 200-hour SMA is now turning bullish, rising above $78.50.
A near-term demand zone sits nearby to catch any downside moves near the $77.00 handle, and Crude Oil is holding steady after tapping a multi-month high this week.
WTI hourly chart
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds below 0.6750 on US Dollar recovery
The AUD/USD pair edges lower to 0.6745, snapping the four-day winning streak during the early Asian session on Monday. The renewed US Dollar demand amid the cautious mood weighs on the pair.
EUR/USD weakens below 1.0850 as the leftist New Popular Front leads exit poll in French election
The EUR/USD pair trades on a weaker note near 1.0830 on Monday during the early Asian trading hours. The political uncertainty in France after the second voting round of French parliamentary elections on Sunday exerts some selling pressure on the Euro.
Gold: Points to bullish tilt ahead of Powell’s testimony, US inflation data
Gold benefited from broad-based USD weakness and advanced beyond $2,380. Fed Chairman Powell’s testimony and US CPI data could significantly impact Gold’s performance this week. XAU/USD’s near-term technical outlook points to a bullish tilt.
Ethereum records another day of heavy liquidations as Mt. Gox bearish pressure persists
Ethereum is down nearly 5% on Friday following the Mt. Gox BTC repayment, sparking more than $108 million in ETH liquidations. The repayment's supply strengthened the bearish momentum on Bitcoin, which spiraled into altcoins like ETH.
French election: It’s all over for Marine Le Pen, but the left weighs on the Euro
The deciding vote in the French Parliamentary elections closed this evening, and the exit poll suggests a shock result. The winning party is the left alliance, the popular front, which was pulled together to try and keep Le Pen’s far right National Rally party out of power.