- Crude Oil sees a 1.5% increase, climbing above $66.80
- Markets struggle to interpret OPEC report, hinting at optimistic demand outlook
- US Dollar Index dips below 101.50 after Kamala Harris’ debate victory
Crude Oil experienced a positive trading day, bouncing back near 1.5% and surpassing $66.80 on Wednesday. This surge comes as a relief for the commodity, which had faced significant losses in September and hit its lowest level since May 4, 2023, just a day prior. The decline was triggered by the latest OPEC report, which painted a rosy picture of demand outlook and suggested minor production cuts could balance the market.
The US Dollar Index (DXY) is trading below 101.50 following Kamala Harris’ victory in the overnight debate. However, all eyes are now on the US Consumer Price Index (CPI) release for August, as markets speculate on the Fed’s interest rate decision next week.
Currently, Crude Oil (WTI) is priced at $66.78, while Brent Crude stands at $70.47.
Key Market Updates:
- Energy Information Administration (EIA) report suggests US demand plateauing
- American Petroleum Institute (API) reports unexpected drawdown in Crude Oil stockpile
- EIA to release weekly Crude Stockpile Change data, with a build of 0.9 million expected
Technical Analysis:
Crude Oil faces downward pressure amid discrepancies between OPEC forecasts and global economic realities. With demand slowing in major markets like China and the US, any upward movements are likely short-lived. Reclaiming $66.91 could open doors to $70.00 and beyond, but a return to $75.27 hinges on significant market shifts.
On the flip side, breaching $64.38 could lead to further downside towards $61.65 and $60.00.
US WTI Crude Oil: Daily Chart
Brent Crude Oil FAQs:
Brent Crude Oil, a benchmark for international prices, is influenced by global growth, geopolitical events, and OPEC decisions. Weekly inventory reports by API and EIA also impact prices, reflecting supply-demand dynamics. OPEC’s production decisions play a crucial role in Brent Crude Oil’s pricing.