WTI crude oil prices hedged down following the release of US stocks
WTI crude oil prices hedged down during early Thursday trading, following the release of US stocks, which read above expectations. The market was less active than usual, due to the long weekend in Europe, America and most of Asia, with the reduction in the number of active buyers also contributing to the easing in prices. However, the outlook for the price of the barrel remains very much tilted to the upside – demand remains amidst tight supply, with the IEA warning on Wednesday that up to 3 million barrels a day of Russian oil may be withdrawn from the market in May, due to sanctions. Against such background, there may be scope for further price rises in the weeks ahead.
The US dollar is losing ground to other major currencies during early Thursday trading. The greenback retreated from the almost two-year high reached on Wednesday, as the markets continue to digest the release of US inflation data on Tuesday. Despite reaching the highest yearly rate in four decades, inflation showed signs of stabilization, with the core number reading below expectations and perhaps shifting investors’ outlook slightly, towards a somewhat less aggressive stance from the Federal Reserve.
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