- WTI edges lower as US Dollar attempts to retrace its recent losses.
- US appointed a task force to protect shipping commerce in the Red Sea.
- US is expected to increase oil production which may exceed the growing global demand in 2024.
West Texas Intermediate (WTI) snaps a two-day winning streak, trading lower around $74.00 per barrel during the Asian session on Wednesday. However, Crude oil prices found support from geopolitical disruptions, stemming from attacks by the Iran-led Houthi militant group on commercial vessels in the Red Sea.
The United States (US) has taken action by establishing a task force to safeguard Red Sea commerce in response to the attacks on commercial vessels in the Red Sea. This decision comes after virtual talks on Tuesday between US Defense Secretary Lloyd Austin and defense ministers from the region. Conversely, the Houthis have pledged to defy the US-led naval mission and continue their attacks.
According to S&P Global Commodity Insights, the United States is expected to increase oil production, contributing to robust non-OPEC+ supply growth that will likely exceed the growing global demand in the upcoming year. This projection suggests a potential limitation on the upward movement of Crude oil prices.
American Petroleum Institute (API) Weekly Crude Oil Stock on the week ending on December 15, rose to 0.939M, swinging from the previous decline of 2.349M figures. The US Energy Information Administration is set to release the Crude Oil Stocks Change report on Wednesday. Expectations indicate an improvement in stockpiles, with a forecasted decline to 2.233 million from 4.259 million prior.
Shell PLC and Equinor ASA announced on Tuesday the approval for a 90,000 barrels per day (bpd) oil and gas platform in the US Gulf of Mexico. Additionally, they expressed the intention to make aggressive investments in exploration to sustain production through 2050.
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 extends slide below 1.1350 on renewed USD strength
EUR/USD extends its daily slide and trades below 1.1350 in the American session on Friday. Renewed US Dollar strength on growing optimism about a de-escalation of the US-China trade war makes it difficult for the pair to hold its ground heading into the weekend.
GBP/USD consolidates losses near 1.3300 after UK Retail Sales data
GBP/USD remains under moderate selling pressure near 1.3300 despite the upbeat UK Retail Sales data for March. The pair feels the heat of the solid US Dollar rebound, aided by latest headlines hinting at a softening rhetoric in the ongoing US-China trade conflict.
Gold drops toward $3,250 as market mood improves
Gold turns south following Thursday's rebound and declines toward $3,250 on Friday. The bearish pressure builds up as market mood improves on growing optimism about a de-escalation of the US-China trade conflict after US President Trump hinted at the beginning of negotiations.
Ethereum: Accumulation addresses grab 1.11 million ETH as bullish momentum rises
Ethereum saw a 1% decline on Friday as sellers dominated exchange activity in the past 24 hours. Despite the recent selling, increased inflows into accumulation addresses and declining net taker volume show a gradual return of bullish momentum.
Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets
Barrage of US data to shed light on US economy as tariff war heats up. GDP, PCE inflation and nonfarm payrolls reports to headline the week. Bank of Japan to hold rates but may downgrade growth outlook. Eurozone and Australian CPI also on the agenda, Canadians go to the polls.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.