WTI cools down below $75.00 amid increased US inventories, higher USD
- WTI cools down after reaching all above $76.50 on Wednesday.
- Higher oil inventories, demand-supply disruptions and higher USD controls the movement.
- Oil halted five-session rally with mild losses on corrective pullback.
Crude oil consolidates gains on Wednesday in the Asian trading hour. The prices peaked near all time high on Tuesday but flatters quickly on higher US dollar and US stock inventories reports. At the time of writing, WTI is trading at $74.33, up 0.15% for the day.
The strong buying pressure in the US Dollar Index (DXY), which indicates the performance of the greenback against six major rivals, keeps the gain limited for the black gold for the time being. The US dollar was last seen trading at 93.75, up 0.05% for the day.
Crude oil prices march higher on the supply side concerns and growing fuel demand amid falling US crude stockpiles ealier in the week. The US crude inventories unexpectedly rose by almost 4.1 million barrels for the week ended on September 24 amid global energy crisis in natural gas. The API also reported on Tuesday that gasoline stockpiles jumped 3.6 million last week.
Investors digested OPEC’s world oil outlook amid concerns about demand outstripping supply capacity. As per the report, the output is expected to remain below 2019 levels even if demand recovers sharply. The organization estimates that demand would expand by 1.7 million bpd in 2023 to 101.6 million bpd. Furthermore, output at US oil platforms in the gulf of Mexico still lagged behind pre-hurricane levels.
As for now, traders wait for the EIA Crude Oil Stocks Change data to gauge market sentiment.
WTI techncial levels