Market Analysis

West Texas Intermediate (WTI) US Crude Oil prices are currently in a bullish consolidation phase during the Asian trading session on Thursday, hovering near their highest level since October 2023. Priced just above $85.00, WTI remains relatively stable for the day, influenced by various opposing factors.

The Energy Information Administration (EIA) report released on Wednesday revealed an unexpected increase in US Crude stockpiles, which is considered a negative factor for oil prices. However, concerns about supply disruptions in the Middle East, tight global supply, and improving demand are helping to support prices.

Recent Ukrainian attacks on Russian refineries disrupting fuel supply, along with the potential for the Israel-Hamas conflict to escalate and impact Middle East supplies, are providing a positive push for Crude Oil. Additionally, the unchanged oil supply policy following the OPEC+ minister meeting and calls for enhanced compliance with output cuts are factors to consider.

Federal Reserve Chair Jerome Powell's cautious stance on future interest rate adjustments, coupled with positive Chinese manufacturing data boosting optimism about increased oil demand, are expected to bolster Crude Oil prices and prevent significant declines.

Paraphrasing text from "FX Street" all rights reserved by the original author.