WTI crude oil stays firmer past $76.00 on softer US Dollar and hopes of more energy demand – Crypto News – Crypto News
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WTI licks its wounds following strong recession worries drop WTI licks its wounds following strong recession worries drop

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WTI crude oil stays firmer past $76.00 on softer US Dollar and hopes of more energy demand – Crypto News

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3 years ago

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  • WTI crude oil picks up bids to portray a three-day uptrend.
  • US Dollar bears the burden of BOJ-inflicted bond selling.
  • Surprise fall in API inventories, upbeat headlines from China, Japan adds strength to the recovery moves.
  • Weekly EIA oil stockpiles, US CB Consumer Confidence eyed for fresh impulse.

wti crude oil buyers jostled with a short-term key hurdle around $76.50 during the three-day uptrend on Wednesday morning. In doing so, the black gold cheers the broad-based US Dollar weakness, as well as cautious optimism in the market. Adding strength to the run-up could be the latest inventory data from the private data provider American Petroleum Institute (API).

US crude oil inventories fell by about 3.1 million barrels in the week ended December 16, according to market sources citing American Petroleum Institute figures per Reuters. The private oil stockpile data previously marked an increase in inventories by 7.819 million barrels.

US Dollar Index (DXY) dropped the most in a week the previous day, steadying around 104.00 by press time, as the greenback traders feared less Japanese bond-buying of the US Treasury bonds due to the BOJ action. Japan is the biggest holder of US Treasury bonds and the latest move allows Tokyo to put more funds into the nation than letting it flow outside. That said, the 10-year counterpart rose more than the two-year ones and hence reduced the yield curve inversion that suggests the odds of the recession.

Elsewhere, hopes of China’s more investment, due to the World Bank’s cutting of growth forecasts for the dragon nation and the policymakers’ readiness to battle the recession fears, favored the market sentiment. On the same line could be the US Senate’s advancement of the $1.66 trillion government spending bill, as well as Japan’s upbeat economic forecasts.

Amid these plays, the US 10-year Treasury yields grind near a three-week high of 3.69% while the two-year bond coupons stay firmer around 4.26% by the press time. Further, Wall Street closed in green and allowed shares in the Asia-Pacific bloc to print mild gains of late. Additionally, yields on the two-year Japanese Government bonds (JGBs) rose beyond 0.0% for the first time since 2015.

Looking forward, the official oil stockpile from the Energy Information Administration (EIA) for the week ended December 16, which previously showed an addition of 10.231 million barrels, will be important for immediate directions. On the same line will be the US Conference Board (CB) Consumer Confidence figures for December, expected at 101.00 versus 100.00 prior.

technical analysis

A daily closing beyond a seven-week-old descending resistance line, near $76.50 by the press time, becomes necessary for the WTI bulls to keep the reins.

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