West Texas crude has moved higher for a second straight day. In Thursday’s North American session, WTI crude futures are trading at $49.30. Brent Crude futures have climbed to $52.24, as the Brent premium stands at $2.96. On the release front, Crude Oil Inventories posted a gain of 0.9 million, shy of the forecast of 1.2 million. Pending Home Sales jumped to 5.5%, well above the forecast of 2.3%. On Thursday, the US releases Final GDP and unemployment claims.
It’s been a rough March for oil prices, as WTI has fallen 8.6 percent. Markets remained concerned about a global oil glut, as increasing US production has offset OPEC production cuts. US Crude inventories continue to show surpluses, most of which have been higher than the forecast. Although another surplus was recorded last week, the reading of 0.9 million was slightly smaller than the estimate of 1.2 million. Still, total US crude inventories have reached an all-time high of 534.0 million barrels, so oil prices may continue to struggle to break above the symbolic $50 level.
President Donald Trump found himself on the short end of the stick in the rough-and tumble politics in Washington, as his bill to replace the Affordable Care Act was pulled before prior to a vote. This was a humiliating setback for Trump, given that the Republicans enjoying a majority in Congress. The bruising defeat has sent the US dollar sharply lower and market jitters higher. Trump’s administration has stumbled out of the starting gate, and after more than two months in office, he has yet to provide any details over even an outline of economic policy. The inquiry into the Trump administration’s links with Russia is gathering steam, and is another cause for concern for nervous investors. Trump has said he will now focus on tax reform, but he has his work cut out, trying to convince a skeptical Congress and general public that he can deliver the goods and push his tax legislation through Congress.
Wednesday (March 30)
- 9:20 US FOMC Member Charles Evans Speech
- 10:00 US Pending Home Sales. Estimate 2.3%. Actual 5.5%
- 10:30 US Crude Oil Inventories. Estimate 1.2M. Actual 0.9M
Upcoming Key Events
Thursday (March 30)
- 8:30 US Final GDP. Estimate 2.0%
- 8:30 US Unemployment Claims. Estimate 244K
*All release times are GMT
*Key events are in bold
WTI/USD for Wednesday, March 29, 2017
WTI/USD March 29 at 12:35 EST
Open: 48.56 High: 49.37 Low: 48.38 Close: 49.30
WTI USD Technical
WTI/USD showed little movement in the Asian and European sessions. The pair has posted strong gains in North American trade
- 46.54 is providing support
- 52.22 is the next resistance line
- Current range: 46.54 to 52.22
Further levels in both directions:
- Below: 46.54, 40.57 and 33.22
- Above: 52.22, 58.32, 65.05 and 72.99
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