WTI retreats further from one-week top set on Wednesday, slides to $71.70 area
- WTI attracts some sellers on Thursday and snaps a three-day winning streak to a one-week high.
- Indications of a rise in US Crude inventories and worries about Trump’s tariffs weigh on Oil prices.
- Concerns over supply disruption in Russia and a weaker USD could lend support to the black liquid.
West Texas Intermediate (WTI) US Crude Oil prices extend the overnight pullback from the vicinity of the $73.00 mark, or a one-week top, and drift lower during the Asian session on Thursday. The commodity slides to the $71.75 area, or a fresh daily low in the last hour, and for now, seems to have snapped a three-day losing streak.
Market sources, citing the American Petroleum Institute (API) report, said on Wednesday that US Crude stocks rose by 3.34 million barrels last week. This, along with concerns that US President Donald Trump's trade tariffs could weaken the global economy and dent fuel demand, fails to assist Crude Oil prices to capitalize on a three-day-old recovery from the year-to-date low touched earlier this week.
Apart from this, worries about slowing demand from the Eurozone and China exert additional pressure on the black liquid. That said, supply disruptions in Russia could help limit deeper losses. In fact, Russia said that oil flows from the Caspian Pipeline Consortium – a major route for crude exports from Kazakhstan – were reduced by 30%-40% after a Ukrainian drone attack on pumping stations.
Furthermore, the emergence of some US Dollar (USD) selling, despite the Federal Reserve's (Fed) hawkish outlook, could act as a tailwind for Crude Oil prices. Traders now look forward to the release of the official US Crude inventories data, due later during the North American session. Nevertheless, the mixed fundamental backdrop warrants some caution before placing aggressive directional bets.
