WTI stalls upside below $72 amid IEA’s warning

Dhwani Mehta FXStreet

In its latest oil market report published on Tuesday, the International Energy Agency (IEA) said that “current market pessimism stands in stark contrast to the tighter market balances for H2.”

Additional takeaways

Despite Russia's announced 500,000 bpd supply cut, it may be boosting volumes to make up for lost revenue.

Russian oil exports reached post-invasion high of 8.3 mln bpd in April.

OPEC+ oil supply will fall by 850,000 bpd while non-OPEC+ supply will rise by 710,000 bpd from April through December.

Global oil supply fell by 230,000 bpd to 101.1 mln bpd in April.

China’s demand recovery surpasses expectations, hit record in March of 16 mln bpd.

Demand is expected to eclipse supply by almost 2 mln bpd in second half of year.

China will account for nearly 60% of global oil demand growth in 2023.

Global oil demand is set to rise by 2.2 mln bpd in 2023 to a record 102 mln bpd.

Market reaction

WTI is unable to extend its recovery momentum after the warning issued in IEA’s oil market outlook. The US oil is trading at around $71.50, easing from session highs of $71.62, still up 0.29% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD treads water around 1.1900

EUR/USD edges a tad lower around the 1.1900 area, coming under mild pressure despite the US Dollar keeps the offered stance on turnaround Tuesday. On the US data front, December Retail Sales fell short of expectations, while the ADP four week average printed at 6.5K.

GBP/USD looks weak near 1.3670

GBP/USD trades on the back foot around the 1.3670 region on Tuesday. Cable’s modest retracement also comes in tandem with the decent decline in the Greenback. Moving forward, the US NFP and CPI data in combination with key UK releases should kee the quid under scrutiny in the next few days.

Gold the battle of wills continues with bulls not ready to give up

Gold comes under marked selling pressure on Tuesday, giving back part of its recent two day advance and threatening to challenge the key $5,000 mark per troy ounce. The yellow metal’s correction follows a better tone in the risk complex, a lower Greenback and shrinking US Treasuty yields.

AI Crypto Update: BankrCoin, Pippin surge as sector market cap steadies above $12B

The Artificial Intelligence (AI) segment is largely on the back foot with major coins such as Bittensor (TAO) and Internet Computer (ICP) extending losses amid a sticky risk-off sentiment.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.