OIL FINDS FLOOR NEAR $76 AFTER UNEXPECTED INCREASE IN US STOCKPILES
- WTI Oil finds a floor for now near $76 in a sensitive market.
- Oil traders were caught by surprise by the EIA build of stockpile by 1.234 million barrels.
- The US Dollar Index firms after the Fed’s rate decision on Wednesday.
Oil prices appear to have bottomed out on Thursday after a wild ride earlier this week, which was very much headline-driven. Besides the possible sanctions from the US on Venezuelan oil, markets were choked by the possibility of Saudi Arabia looking into ramping up its production. Although the news was about the fact that the plans were scrubbed, the idea alone was enough for markets to halt the rally to $80 and instead retreat by $4. The unexpected hefty increase of the EIA stockpiles reported on Wednesday also weighed on the commodity.
Meanwhile, the US Dollar Index (DXY) is in the green, though momentum appears to be fading again. Although the US Federal Reserve Chairman Jerome Powell pushed back against a March rate cut possibility, he did not really do that for May or June. This means a small tweak in positions, with no substantial moves expected in the US Dollar further.
Crude Oil (WTI) trades at $76.32 per barrel, and Brent Oil trades at $81.01 per barrel at the time of writing
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