Crude prices set for weekly gain after stock draw

2024-05-17
Summary:

Asian oil prices surged Friday as global benchmark Brent eyed its first weekly gain in three weeks, driven by rising demand and a weaker US dollar.

Oil prices rose in Asian trading hours on Friday, with global benchmark Brent set for its first weekly increase in three weeks on signs of improving global demand and a weaker US dollar.

Recent declines in oil and refined products inventories at major global trading hubs have created optimism, reversing a trend of rising stockpiles that had weighed heavily on crude oil prices in prior weeks.


US crude oil, gasoline and distillate inventories fell last week as refining activity and fuel demand rose, the EIA said. Crude inventories dropped by 2.5 million barrels, compared with expectations for a loss of 543k barrels.


Elsewhere China’s economy likely continued to show signs of improvement in April, buoying the outlook for recovery as policymakers ramped up support. It imported more oil than expected last month.


Industrial production probably remained a key growth driver with robust exports and infrastructure investment driving demand. China plans to pump 1 trillion yuan into the economy through long-term bond sales.


Wildfires in Canada were moving closer to the country's major oil production hubs. Venezuela’s oil output has slightly receded for a second straight month following the return of US sanctions.

XTIUSD

WTI Crude has been largely range-bound this week with the upside capped at 200 SMA. If the price increases above that level, a further rally beyond $82 is likely.


Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

​Australian dollar on solid footing ahead of China data

​Australian dollar on solid footing ahead of China data

Australian dollar nears six-month highs Friday, expecting two Fed rate cuts, faces challenges from upcoming China economic data next week.

2024-07-12
Crude Prices Edge Up on Balanced Market

Crude Prices Edge Up on Balanced Market

Oil prices rose early Friday in Asia due to strong summer demand and easing US inflation, boosting investor confidence.

2024-07-12
US CPI June - U.S. Prices are Unexpectedly Flat

US CPI June - U.S. Prices are Unexpectedly Flat

In May, US consumer prices were flat as cheaper gasoline offset higher rental costs, but inflation remains too high for Fed rate cuts.

2024-07-11