- WTI Crude Oil prices manage to hold above a three-week low touched the previous day.
- A bullish USD and fuel demand worries turn out to be key factors exerting some pressure.
- Traders look to the OPEC+ meeting and the EIA report on US inventory for a fresh impetus.
West Texas Intermediary (WTI) Crude Oil prices struggle to capitalize on the overnight bounce from a three-week low – levels just below the $87.00/barrel mark and edges lower during the Asian session on Wednesday. The commodity currently trades around the $88.15-$88.10 area, down over 0.35% for the day, though the downside seems cushioned ahead of the OPEC+ panel meeting later today.
Ministers from the Organization of the Petroleum Exporting Countries (OPEC) and allies, known as OPEC+, are unlikely to tweak its current oil output policy in the wake of tightening global crude supply and rising demand. The market focus, meanwhile, will be an expected update on plans by Saudi Arabia and Russia for their voluntary cuts. In fact, the world's two largest Oil producers announced in September that they would extend the voluntary cuts amounting to 1.3 million barrels per day to the end of the year and said they would review the cut decisions monthly.
Apart from this, traders will take cues from the official Energy Information Administration (EIA) report on US stockpiles. The weekly inventory data published by the American Petroleum Institute (API) on Tuesday showed that US Crude Oil stockpiles possibly fell as much as 4.0 million barrels last week. The consensus estimates, meanwhile, suggest a drawdown of 0.092 million barrels as compared to a fall of 2.17 million barrels in the previous week. Nevertheless, the data might infuse some volatility and produce some trading opportunities around Crude Oil prices.
In the meantime, the underlying bullish sentiment surrounding the US Dollar (USD), bolstered by firming expectations for further policy tightening by the Federal Reserve (Fed), could act as a headwind for the USD-denominated commodity. This, along with worries that economic headwinds stemming from rapidly rising borrowing costs could dent fuel demand, might contribute to keeping a lid on any meaningful upside for Crude Oil prices.
Technical levels to watch
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
EUR/USD under pressure near 1.0350 after mixed sentiment data
EUR/USD remains in the negative territory near 1.0350 in the European session on Tuesday, erasing a portion of Monday's gains. The pair is undermined by risk aversion and the US Dollar demand, fuelled by US President Trump's tariff threats, and mixed sentiment data.
GBP/USD drops to 1.2250 area on broad USD strength
GBP/USD stays under bearish pressure and trades deep in the red near 1.2250 on Tuesday as the USD gathers strength following US President Trump's tariff threats. The data from the UK showed that the ILO Unemployment Rate edged higher to 4.4% in the three months to November.
Gold price eases from over two-month top on stronger USD, positive risk tone
Gold price (XAU/USD) retreats slightly after touching its highest level since November 6 during the early European session on Tuesday and currently trades just below the $2,725 area, still up over 0.50% for the day.
Bitcoin fails to sustain the $109K mark after Trump’s inauguration
Bitcoin’s price steadies above the $102,000 mark on Tuesday after reaching a new all-time high of $109,588 the previous day. Santiment’s data shows that BTC prices quickly corrected, as social media showed major greed and FOMO among the traders in Bitcoin after President Donald Trump’s inauguration.
Five keys to trading Trump 2.0 with Gold, Stocks and the US Dollar Premium
"I have the best words" – one of Donald Trump's famous quotes represents one of the most significant shifts to trading during his time. Words from the president may have a more significant impact than economic data.
Trusted Broker Reviews for Smarter Trading
VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.