Crude Oil to Take Another Hit on US Inventories and CPI Inflation Today?
Skerdian Meta • 1 min read
Crude Oil jumped higher yesterday, gaining more than 6 cents as news of a cut to the flow in the Russian southern Oil pipeline, sent US WTI Oil more than $6 higher, above $90 once again. The uncertainties surrounding Iran’s exports are also having a positive impact, but the worries of a global recession are a much larger factor that has been keeping Oil bearish for about two months.
Central banks are a major factor in this induced recession as they have been hiking interest rates like maniacs, even though inflation has nothing to do with the economy, since it has come plainly from price hikes by major producers. Nonetheless, they are still basing their rate policy on inflation numbers and today’s CPI will have an impact on the sentiment, which in turn will affect crude Oil.
Crude Oil H4 Chart – WTI Reversing at the 50 SMA
Oil waiting the data between 2 moving averages
But before that, we have the US crude Oil inventories which will be released after the CPI report. they are expected to show a small buildup of 100k barrels, although the report from the private firm API showed a much larger buildup yesterday at above 2 million.
API Inventories Report
Headline crude +2.156M barrels
Distillates +1.376M bbls
Gasoline -0.627M bbls
Cushing +0.91M bbls