US GDP Eyed Submit Dovish Fed, OPEC+ and Indian Covid Surge

Crude Oil, WTI, EIA, Fed, India, US First Quarter GDP – Speaking Factors:

• Crude oil costs pushed greater, trimmed good points after EIA report
• Dovish Fed might enhance good points forward of key first-quarter US GDP
• WTI costs could also be aiming to revisit March peak, however path bumpy

Crude oil costs aimed greater over the previous 24 hours, growing a lot of the push throughout Wednesday’s European buying and selling hours. Costs then trimmed some upside progress after EIA stock knowledge confirmed oil stockpiles rising by 90ok barrels. Economists had been estimating a -60ok drawdown as a substitute.

The commodity then seesawed across the Federal Reserve’s newest financial coverage announcement. There, the central financial institution reiterated its dovish stance regardless of rising near-term inflationary pressures. Fed Chair Jerome Powell pressured that the central financial institution views these good points as a transitory impact.

Market sentiment picked up tempo throughout Thursday’s Asia-Pacific buying and selling session, including upward momentum to WTI. However, it needs to be famous that the commodity faces some obstacles. For one factor, OPEC+ members agreed to progressively restore output, boosting provide by about 2 million barrels per day within the coming months.

In the meantime, surging Covid circumstances and deaths in India, the world’s third-largest shopper of oil, seemingly weighed on vitality costs. The nation reported a grim 3.6k fatalities over the previous 24 hours as coronavirus circumstances climbed by virtually 380ok.

Over the remaining 24 hours, crude oil is eyeing first-quarter US GDP knowledge. Preliminary estimates level to a progress fee of 6.6% q/q, up from 4.3% prior. Given the dovish Fed, a stronger-than-expected print might additional bolster market sentiment. Which will in flip spillover into vitality costs.

Crude Oil Technical Evaluation

WTI crude oil futures seem like aiming for a retest of the March peak. This adopted a bounce off the important thing 57.27 – 58.60 help zone. The 20-day and 50-day Easy Shifting Averages seem like sustaining the upside focus. These might come into play within the occasion of a near-term flip decrease.

WTI Futures Day by day Chart

Chart Created Utilizing TradingView

–— Written by Daniel Dubrovsky, Strategist for DailyFX.com

To contact Daniel, use the feedback part under or @ddubrovskyFX on Twitter