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Crude Oil Prices Risk Forming a "Lower High" on Viral Concerns, Stockpiles Fall


Crude Oil Prices Risk Forming a “Lower High” on Viral Concerns, Stockpiles Fall
CRUDE OIL PRICE OUTLOOK:
US crude inventories fell more than expected last week, underscoring strong demand in North America
Lingering viral concerns may cast a shadow over the demand outlook for the rest of the world
Crude oil prices edged slightly higher during Thursday’s APAC session after falling 0.43% a day ago. Investors are holding their breath for Wednesday’s FOMC meeting and Jerome Powell’s press conference for clues about the Fed’s tapering timeline. Any surprise from the meeting may result in heightened market volatility. A more dovish-biased statement may soften the US Dollar and buoy commodity prices, whereas a hawkish one may lead to the reverse. ....

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Crude Oil Prices May Rise if Stockpiles Fall, FOMC Meeting Eyed


Crude Oil Prices May Rise if Stockpiles Fall, FOMC Meeting Eyed
CRUDE OIL PRICE OUTLOOK:
API reported a surprise draw in inventories, which may help to underpin oil prices
WTI hovered near US$ 64.7 ahead of the FOMC meeting, with the US Dollar closely watched
Reflation and stimulus hopes have largely been baked in, rendering oil prices susceptible to a technical pullback should the central bank deliver a hawkish-biased message
Crude oil prices were little changed during Wednesday’s APAC session as traders await fresh catalysts from the upcoming FOMC meeting. The American Petroleum Institute (API) reported a surprise draw in crude inventories of 1.05 million barrels for the week ending March 12th, compared to a baseline forecast of a 2.7-million-barrel build. This suggests that demand is picking up at a faster-than-expected pace as refineries resume operating after February’s cold blast. ....

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Oil Price Fundamental Daily Forecast – Vaccine Rollouts Boosting Demand Optimism as Brent Nears $60 Level


forecasts
Oil Price Fundamental Daily Forecast – Vaccine Rollouts Boosting Demand Optimism as Brent Nears $60 LevelIt would have to take a dramatic shift in the optimism over the COVID-19 vaccine rollout to truly derail the current rally.
Feb 05, 2021 01:28 PM GMT
U.S. West Texas Intermediate and international-benchmark Brent crude oil futures rose to their highest levels in nearly a year on Friday with Brent traders zeroing in on the psychological $60 a barrel level on economic revival hopes led by strong compliance with the planned output cuts by OPEC+.
Also contributing to the gains were another drawdown in U.S. stockpiles, a rise in new orders for U.S.-made goods, which indicates continued strength in manufacturing and hopes for the passage of President Joe Biden’s COVID-19 relief plan. ....

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