WTI edges higher on Friday, though the intraday uptick lacks bullish conviction.
Mixed demand-supply cues hold back traders from placing fresh directional bets.
Acceptance above the 200-day SMA supports prospects for further near-term gains.
West Texas Intermediate (WTI) US Crude Oil prices attract some buying near a technically significant 200-day Simple Moving Average (SMA) during the Asian session on Friday and for now, seem to have snapped a two-day losing streak. The commodity currently trades just above the $78.00/barrel mark, though remains well below a one-month high touched on Wednesday.
Easing inflation in the US should allow the Federal Reserve (Fed) to start cutting interest rates in June, which is anticipated to boost fuel demand in the world’s largest Oil consumer. This, along with a modest US Dollar (USD) downtick, which tends to benefit the USD-denominated commodities, acts as a tailwind for the black liquid. Meanwhile, the expected continuation of the OPEC+ production cuts to the end of the second quarter of 2024 points to softer demand outlook. Apart from this, signs of higher supplies keep a lid on any further gains for Crude Oil prices.
In fact, record-high US production and higher output from OPEC signalled that global oil markets may not be as tight as initially expected. Furthermore, a recession in Japan and the UK, along with the darkening economic outlook for the Eurozone economy, points a weak picture for Crude demand. This might hold back traders from placing aggressive bullish bets around Crude Oil prices and continue to cap the upside. Nevertheless, the commodity remains on track to register strong weekly gains, marking the third week of a positive move in the previous four.
From a technical perspective, the recent breakout and acceptance above the very important 200-day SMA favours bullish traders. That said, the commodity’s repeated failures to find acceptance above the $79.00/barrel mark warrant some caution before positioning for any further gains amid mixed oscillators on the daily chart.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/wti-consolidates-around-7800-remains-on-track-to-post-second-straight-week-of-gains-202403010525
