WTI crude oil maintained a bearish position bias at the start of the week as it updated an intraday low near $78.40 on Wednesday morning in Europe. Thus, black gold bears the brunt of the recovery from the broad U.S. dollar and gloomy sentiment amid expectations of more crude supplies. In this daily information about forex, we have successfully summarized all the data from the fxstreet.com site.


wti crude oil
WTI crude oil



Even so, UAE Energy Minister Suhail Mohamed Al Mazrouei on Tuesday said that the UAE would be committed to the OPEC deal which will last until the end of 2023.


However, the diplomat said he was more worried about supply than demand for next year. While saying the same thing, he said that the release of the American strategic oil reserve (SPL) will not surprise the market. Although the comments from the Arab official ideally put the price cap down, hawkish statements from Fed policymakers, while U.S. inflation was not impressive, joined a surprise increase in U.S. oil inventories to weigh on prices. On Tuesday, the US CPI soared past market expectations around 6.4% point YoY, but posted its slowest gain since 2021, falling below 6.5%. What's more, Core CPI grew by around 5.6% YoY compared to the market forecast of 5.5% and the previous reading of 5.7%.


Following the data, Dallas Fed President Lori Logan stated that they should be ready to resume raising interest rates for a longer period than previously thought. In line with that, New York Fed President John Williams noted that the work to control inflation that is still too high is not yet complete. Philadelphia Fed President Patrick Harker signaled that they are not done with the rate of rate hikes, but it is likely that it is imminent. Elsewhere, API released weekly crude stockpiles up to February 10 while recording an increase of 10.507 million barrels, higher compared to the previous withdrawal which only reached 2.184 million barrels.


It should be noted that concerns about a global economic slowdown and the U.S. readiness to continue using the SPR in order to combat Russia-related oil shortages appear to be predominantly favored by black gold traders. Alternatively, fears of geopolitics and OPEC+ cuts in oil production put the bottom below energy benchmark prices. On the other hand, the 10-year U.S. Treasury yield fell around 3.74% percentage points after briefly rising three bps to update its six-week high the previous day, while the 2-year partner surged up to its highest level since early November 2022, breaking 4.62% percentage points. The S&P 500 tracked the downbeat close from Wall Street to highlight a somewhat offbeat mood and helped DXY to extend the post-US CPI gain to 103.45 as this news was made. 


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