The price of the commodity has been seeing a softer run this past couple of days as the greenback continues with its bullish run. The dollar continues its positive trading as economic data from the United States continues to propel the currency higher.
One of the latest factors that made the dollar rise at an incredible pace this week is the tremendous and hawkish minutes that came from the previous Federal Reserve meeting. The Fed has signaled that they are looking to raise the interest rates this year at an incredible pace; the news is sweet music for the dollar and investors are swift to ride the surging currency.
Furthermore, a lot of energy-trader or investors who prefer commodities as their instruments can look for a silver lining this week as analysts note the release of weekly U.S. supply data. The data and information from the report are expected to help the oil prices climb to relevant levels, at least back to its prices from the previous week.
Today, the West Texas Intermediate crude oil for the month of April was down by a total of 0.9%, losing a total of 522 cents to $61.16 a barrel. The price slump today adds another striking wound for WTI as it falls by 0.2% on Wednesday’s trading. Furthermore, Brent crude futures were also down by 28 cents and dwindling down at $65.14 a barrel.
According to market analyst Richard Perry, “Pressure is initially to the downside today as the oil price is hampered by renewed dollar strength, but we would still be looking for a close below $60.85 to drive near-term direction. It would then open a retreat back towards the key support around $59/$60,”
The U.S. supply data is expected to be released this Wednesday; the information is expected to be released by the U.S. Energy Information Administration after having tons of delay in the past couple of days. Analysts expect that the crude stock to hit an additional 2.5 million barrels a day as opposed to last week’s production.
Meanwhile, the dollar price continues to strengthen with new economic data and Fed minutes under their belt. The ICE U.S. Dollar index was sitting at a respectable 0.1% increase on an earlier trading session to 90.078. The figures were the highest for the greenback after over a week of slumping performance and lackluster trading sessions.
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