WTI Oil Rallied Above The $77 Level As Traders Bet On Rising Demand

Key Insights

• WTI oil gained additional upside momentum after the release of the EIA report. 
• Natural gas pulled back after yesterday’s rally. 
• Gold is trying to get to the test of the resistance at $1815.

WTI Oil Gains More Ground As Rebound Continues

WTI oil moved towards the $77 level after the release of the EIA Weekly Petroleum Status Report. The report indicated that crude inventories increased by 10.2 million barrels from the previous week, driven by the significant increase in crude oil imports. Analysts expected that crude inventories would decline by 3.6 million barrels.

Total motor gasoline inventories grew by 4.5 million barrels, while distillate fuel inventories increased by 1.4 million barrels. Domestic oil production declined from 12.2 million bpd to 12.1 million bpd due to rounding, while the real decrease was just 0.07 million bpd in Alaska.

Traders ignored the increase in crude inventories as they focused on the forecasts from OPEC and IEA, which expect a rebound in demand in 2023. China’s recent moves on the coronavirus front provided additional support to oil markets.

Natural Gas Pulls Back Amid Profit-Taking

Natural gas pulled back towards the $6.60 level as traders took profits after the recent rally.

The weather forecast remains favorable for high natural gas consumption, but traders want to see additional data before they will be ready to push natural gas above the $7.00 level.

Gold Traders Wait For The Fed Decision

Gold is slowly moving towards the resistance at $1815 as traders wait for the Fed decision.

Most likely, traders will stay cautious ahead of the Fed decision and commentary. The signals from Fed Chair Jerome Powell will have a huge impact on markets and determine gold price dynamics for the upcoming weeks. Traders should be prepared for fast moves.

Meanwhile, silver is moving towards the $24.00 level. If Powell signals that the Fed will be less hawkish, silver will have a great chance to get above $24 and move towards the $25 level.

Platinum and palladium pull back after yesterday’s rally. Platinum declined below the $1050 level, while palladium settled near $1900.

Copper Stays Close To The Resistance At $3.90

Copper  is heading towards the important resistance at the $3.90 level. Markets’ reaction to the Fed decision will determine whether copper will be able to climb above $3.90 in today’s trading session.

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