WTI eases to $71.30, down 0.07% intraday while paring the biggest daily gain of the week during early Thursday.
The black gold’s latest pullback could be linked to the market’s cautious sentiment and mixed concerns ahead of the key central bank meetings and PMI release. That said, the previous day’s rebound could well be linked to the hawkish weekly inventory data from the US Energy Information Administration (EIA) and upbeat reaction to the Federal Reserve’s (Fed) faster tapering and higher dot-plot.
Worsening virus conditions in Europe and the UK join the extension of the cold war between the US and China to weigh on the oil prices of late. It’s worth noting that the US push for Uyghur Bill and Beijing’s rush to control data firms are the latest catalysts portraying the Sino-American tussle.
Cautious sentiment ahead of the European Central Bank (ECB) and the Bank of England (BOE) meeting, as well as the preliminary PMI for December, also weigh on the oil prices.
While portraying the mood, the US stock futures struggle for clear direction while the US 10-year Treasury yields seesaw after a two-day uptrend.
On Wednesday, the weekly prints of the EIA Crude Oil Stocks Change dropped more than double the -2.082M forecast to -4.584M for the period ended on December 10.
Talking about the Fed, the US central bank matched wide market forecasts of faster tapering and signals of the rate hike in 2022. However, the oil traders took it as a positive sign considering Fed Chair Jerome Powell’s comments like “the Omicron variant poses risks to the outlook”, as well as refrain from rate hikes until the tapering is completed.
Looking forward, WTI traders should pay attention to the risk catalysts for short-term direction.
Unless providing a decisive break of either the 200-SMA level of $70.22 or the 100-SMA surrounding $73.75, WTI prices are likely to remain sidelined.
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. 76.41% 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.
© 2011-2022 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.
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.