Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Commodity Market: US Crude Oil eases from an 87 1/2-month high as US Dollar scales a six-week peak on rate hike signs

Futures on US West Texas Intermediate Crude Oil eased from an 87 1/2-month peak on Thursday, as the US Dollar advanced to a fresh six-week high and US Treasury yields rose after the Federal Reserve signaled a March interest rate hike.

The US Dollar Index, which reflects the relative strength of the greenback against a basket of six other major currencies, was edging up 0.35% to 96.816 on Thursday. Earlier in the trading session the DXY climbed as high as 96.858, or its highest level since December 15th 2021 (96.906).

A stronger US dollar makes dollar-denominated oil more expensive for international investors holding other currencies.

Yesterday both WTI and Brent reached highs unseen since October 2014 amid tensions between Ukraine and Russia, the second-largest oil producer worldwide, which raised concerns of energy supply disruptions to Europe.

Commonwealth Bank analyst Vivek Dhar noted that efforts by OPEC+ members to increase supply were not materializing, while demand had not been affected as severely by the rapid Omicron spread as earlier feared.

OPEC’s planned supply boost target was missed in December due to capacity constraints limiting supply.

“Continued supply challenges and mounting Russia-Ukraine tensions continue to support crude oil prices. It is down slightly today but I think it is nothing more than a technical move,” Howie Lee, an economist at OCBC in Singapore, was quoted as saying by Reuters.

As of 10:16 GMT on Thursday WTI Crude Oil Futures were inching up 0.07% to trade at $87.41 per barrel. Yesterday the black liquid rose as high as $87.95 per barrel, which has been its strongest price level since October 9th 2014 ($87.95 per barrel).

At the same time, Brent Oil Futures were edging up 0.47% on the day to trade at $90.12 per barrel. Yesterday the commodity rose as high as $90.42 per barrel, which has been its strongest price level since October 10th 2014 ($90.42 per barrel).

Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures

Central Pivot – $86.77
R1 – $88.53
R2 – $89.71
R3 – $91.47
R4 – $93.23

S1 – $85.59
S2 – $83.83
S3 – $82.65
S4 – $81.47

Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures

Central Pivot – $89.31
R1 – $90.81
R2 – $91.92
R3 – $93.42
R4 – $94.92

S1 – $88.20
S2 – $86.70
S3 – $85.59
S4 – $84.48

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News