- WTI price recovers some of its intraday losses due to a correction in the US Dollar.
- Greenback pulls back from the 11-month high marked on Tuesday.
- Saudi Arabia announced to continue the existing policy of output cuts through the end of the year 2023.
Western Texas Intermediate (WTI) oil price retraces the recent gains, trading around $87.70 per barrel during the European trading session on Wednesday.
The prices of Crude oil are under downward pressure as Saudi Arabia announced to maintain its existing output cuts through the end of the year 2023. This is attributed to the concerns over the fears that elevated interest rates could lead to a reduction in fuel demand.
As per a Reuters survey, Saudi Arabia is expected to increase its November official selling price of Arab Light crude to Asia for the fifth consecutive month.
Simultaneously, discussions regarding the resumption of Iraqi oil exports through a pipeline in Turkey are still ongoing, as reported by an Iraqi oil official. This comes after Turkey's announcement of resuming operations this week, ending a nearly six-month hiatus.
According to reports from the Russian newspaper Kommersant, the Russian government is considering a partial lift of its ban on diesel exports in the coming days. This development adds to the evolving dynamics in the energy market.
The cautious sentiment due to the US Federal Reserve’s (Fed) interest rates trajectory is reinforcing the Greenback. The strengthening dollar tends to put downward pressure on WTI prices, as it makes oil more expensive for buyers using other currencies.
The US Dollar Index (DXY) retreats from the 11-month high marked on Tuesday. The spot price beats lower around 106.90 by the press time. However, the US Dollar (USD) strengthened on robust US employment data and higher US Treasury yields.
The 10-year US Bond yield reached its highest level since 2007, hitting 4.85% on Wednesday.
US JOLTS Job Openings exceeded expectations, contributing to an increase in US Treasury yields. The report revealed that job openings improved to 9.61 million in August from the previous reading of 8.92 million, surpassing market expectations.
Market participants are eagerly awaiting the US employment data, with the release of the ADP report on Wednesday and the Nonfarm Payrolls on Friday.
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 stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.