Crude Oil, WTI, EIA, Fed, India, US First Quarter GDP – Call Points:
- Crude oil prices higher, cut profits rose after the EIA report
- The Dovish Fed could boost US headline GDP in the first quarter
- WTI prices may be aimed at revisiting the peak in March, but are bumpy
Crude oil prices have risen over the past 24 hours, developing most of the momentum during Wednesday’s European trading period. Prices then cut some progress after the environmental impact assessment inventory showed that oil stocks rose by 90,000 barrels. Economists estimated the -60k credit instead.
The commodity then revised the Federal Reserve’s latest monetary policy statement. There, the central bank reiterated its dovish attitude despite growing inflationary pressures in the near future. Federation President Jerome Powell stressed that the central bank should keep these profits a temporary effect.
At Thursday’s Asia-Pacific trade session, market sentiment picked up, giving WTI a boost. However, it should be noted that the goods have some obstacles. First, OPEC + members agreed to gradually restore production, increasing supply by about 2 million barrels per day in the coming months.
At the same time, the number of Covid cases and deaths in India, the world’s third largest oil consumer, probably outweighed energy prices. The nation reported 3.6 thousand deaths in the last 24 hours, as the number of coronavirus cases increased by almost 380 thousand.
For the remaining 24 hours, crude oil will look at US first quarter GDP data. According to preliminary estimates, the growth rate is 6.6% qoq, compared to 4.3% previously. Given the dovish fedi, a stronger-than-expected print could further strengthen the market sentiment. This in turn can spread to energy prices.
Technical analysis of crude oil
It seems that the goal of WTI crude oil futures is to repeat the March peak. This was followed by a rebound from a key strength of 57.27 to 58.60. 20-day and 50-day simple moving averages appear to maintain a positive focus. They may come into play in the near future if they turn lower.
WTI futures daily chart
–– Written by Daniel Dubrovsky Strategist to DailyFX.com
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