Oil Moves Higher Before Weekly Eia Data

 Oil Moves Higher Before Weekly Eia Data

Oil Moves Higher Before Weekly Eia Data

sudden shift was seen in the oil prices as they turned negative to cheerful on several bullish signs. The first sign from the API allowed that the oil reserves had gone down by 5.2 million.

In addition, the forecast from EIA showed that the oil supply will not be enough to fill the demand in 2024. The average difference between demand and supply will be around 120K barrels & and could likely extend in case of further OPEC+ cuts.

Day Trading Near 102.00

Elsewhere, the DXY can be seen near 102.00 with a little bit of selling. When discussing the oil, it would be impossible not to mention the greenback as it is a crucial factor for finding oil valuation.

The US Dollar has remained supported throughout the week due to the CPI release due in a few days. For the year 2024, the CPI reading will be a game changer as the entire policy of the Fed will be hanging on it!

lower reading of inflation will be rejoiced by the markets as they are expecting rate cuts. On the contrary, a higher reading will keep the greenback supported but will send the oil lower. Generally, a lower CPI reading will be bullish for the oil markets but not so much for the greenback.

For now, one barrel of WTI is trading near $73.13, while the Brent can be seen near the $78.29 handle. Although the CPI is relevant for even the oil markets, let's remember the weekly EIA data.

buildup of oil reserves will not be suitable for the oil, but a significant drawdown will increase oil prices.

Looking ahead, the $74 handle will be essential to watch. Next up is $80, and then the $84 handle will likely be the next resistance.

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