Crude Oil Prices fell on Higher Inventories

Crude Oil Prices fell on Higher Inventories

U.S. dollar declined yesterday vs. a basket of currencies, negatively affected by weak U.S. data released on Tuesday, which reduced hopes for interest rate hikes soon and decreased optimism about the strength of the economy.

The U.S. Dollar index fell by 0.5% during yesterday’s trading session and settled down at 95.60.

Both Euro and Sterling traded higher yesterday, thanks to weak USD.

On the other hand, the pressure on the Pound could continue during the next period to break $1.30. Sterling was negatively affected by the BoE’s decisions. From a technical point of view, Cable could end the week below $1.30, if everything goes well with US Retail Sales Report on Friday.

Gold settled down to $1,357 affected by lack of US economic data. On the other hand, the decrease of U.S. budget deficit led to preventing gold rising. Traders should watch Friday’s data closely as it may have a significant impact on the precious metal.

On Wednesday, oil prices fell by 1%, after U.S. Energy Information Administration reported that U.S. crude inventories gained 1.1 million barrels in the last week, in a third straight week.

U.S. crude oil settled down to $41.50, negatively affected by such data.

The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.

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