Market news

20 October 2021

WTI remains firmer around $83.50 as bulls poke late 2014 levels

  • WTI holds the head high at seven-year top even as bulls recently take a breather.
  • EIA inventories, brighter mood and US dollar weakness add to the bullish bias.
  • Supply outage, demand forecasts favor upside momentum going forward.

WTI stays on the front foot around $83.50, the highest level since October 2014, during Thursday’s Asian session. The oil benchmark rose during the last two days to refresh the multi-day high.

The latest run-up could be linked to the lower-than-anticipated weekly inventory data from the Energy Information Administration (EIA), as well as US dollar weakness and risk-on mood.

That said, the EIA Crude Oil Stocks Change for the week ended on October 15 dropped below +1.857M forecast and +6.088M prior to -0.431M reading at the latest.

The US Dollar Index (DXY) printed a six-day south-run near the lowest levels in three weeks, pressured around 93.60 by the press time. In doing so, the greenback gauge failed to benefit from the tapering signals from Federal Reserve Governor Randal Quarles and  Cleveland Fed President Loretta Mester as equities rallied on firmer earnings and the Treasury yields also softened after refreshing the multi-day top.

The risk-on mood could be witnessed by strong equities and a pullback in the US Treasury yields, following its run-up to the fresh five-month high. That said, the 10-year Treasury yields around 1.66%, up 2.6 basis points (bps), following the bond yields’ run-up to the five-month high.

It’s worth noting that China’s recent crackdown on energy production and expectations of strong oil demand going forward, as the global economies overcome the pandemic-led activity restrictions, adds to the bullish bias for the WTI crude oil prices.

However, Fed tapering concerns highlight the incoming US data, like today’s US Weekly Jobless Claims and monthly housing figures, for fresh impulse, in addition to the risk catalysts.

Technical analysis

November 2012 low near $84.10 remains on the WTI bull’s radar until the quote stays beyond the year 2018 top of $76.80.

 

Market Focus

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

Open Demo Account
I understand and accept the Privacy Policy and agree that my name and contact details can be used by TeleTrade to contact me about the information I have selected.
23 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.

© 2011-2021 Teletrade-DJ International Consulting Ltd

Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).

The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies.

Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Choose your language/location