WTI oil drops by 0.23%, reaching $85.23 per barrel.

Brent crude oil is facing some resistance at the $90 per barrel level, unable to surpass it so far.

Ignacio Teson•Thursday, April 4, 2024•1 min read

The price of West Texas Intermediate (WTI) crude oil opened this Thursday with a decrease of 0.23%, at $85.23 per barrel.

Futures contracts for WTI for delivery in May were down 13 cents from the previous session’s close.

According to analysts, investors are taking profits after the recent increase that pushed Texas to its highest price since October 2023.

USOIL

The U.S. government yesterday afternoon disclosed an unexpected weekly increase in crude oil commercial inventories, of 3.2 million barrels, which also weighed on the session.

However, analysts believe that supply and demand prospects in the fuel market remain tight and that prices will continue to rise.

Supply remains pressured by geopolitical tensions in the Middle East and Eastern Europe, as well as the reduction in production capacity by OPEC+.

Brent crude oil is facing some resistance at the $90 per barrel level, unable to surpass it so far.

The OPEC+ alliance recommended, during its technical meeting this Wednesday, to maintain the production cut strategy, a stance that supports prices.

Increasing geopolitical risks linked to the escalation of the conflict in the Middle East, supply reductions by OPEC, and improved data from China contribute to fueling this price increase.

Investors continue to be concerned about possible disruptions to crude oil supply following Monday’s airstrikes attributed to Israel, which left at least 13 dead at the Iranian consulate in the Syrian capital, Damascus. Among the dead are seven Iranian military personnel. Iran guaranteed it will retaliate for the action.

The U.S. crude oil reserves report also supported the market. Crude oil commercial inventories increased more than expected last week in the world’s largest economy, although the market was encouraged by a sharp drop in gasoline deposits, reflecting strong demand.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.