- Crude oil markets fall as investor sentiment declines.
- Mid-week market flows lose weight as Treasuries squeeze risk appetite.
- WTI stumbles after hitting three-week highs.
He US West Texas Intermediate (WTI) crude oil It retreated on Wednesday, paring recent gains and snapping a three-day bullish streak, falling back below $80.00 a barrel. Risk appetite in the broader market is evaporating midweek as investors balk at declining demand for U.S. Treasuries and energy markets worry ahead of asset counts. US crude oil production
Demand for US Treasuries declined this week, with bid-to-cover ratios at key bond auctions declining. Nervous investors are increasingly worried about demand for US Treasuries and are turning away from risk assets in search of safer havens. The bid-to-cover ratio in Wednesday's auction of 7-year Treasury notes decreased to 2.43 from 2.48 previously.
The Organization of the Petroleum Exporting Countries (OPEC) and its expanded network of non-member allies, OPEC+, are scheduled to begin an online-only meeting this Sunday, June 2, and energy markets generally anticipate that OPEC+ will maintain production limits volunteers a total of 2.2 million bpd as the oil cartel struggles to support global crude oil prices by reducing supply.
Meanwhile, US crude oil production continues to threaten to swamp demand, and barrel traders are awaiting US crude oil barrel counts due out this week.
Economic Indicator
Change in EIA Crude Oil Inventories
The EIA crude oil inventories report is a weekly measure of the change in the number of barrels in stock of crude oil and its derivatives, and is published by the Energy Information Administration. This report tends to generate high price volatility as oil prices impact global economies, primarily affecting commodity-related currencies such as the Canadian Dollar. Although it has a limited impact across currencies, this report tends to affect the price of oil itself, and therefore has a more notable impact on WTI crude oil futures.
Technical outlook for WTI
US WTI crude oil fell back below $80.00 per barrel on Wednesday, crossing below the 200-day EMA at $79.16. Crude oil is set to finish in the red for the first time in four consecutive trading days, with WTI still down more than 9% from year-high bids, just above $87.00.
WTI daily chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
