Key Points in Energy Markets: Crude Oil, WTI, Brent, & Others

Here are some important Key Points in Energy Markets:

The price of crude oil is surging due to concerns about energy market supplies, particularly regarding liquefied natural gas (LNG). The Japanese Yen continues to weaken, with EUR/JPY surpassing a recent peak. Financial markets are poised for potential movement as they await the upcoming US Consumer Price Index (CPI) report.

Despite inventory data indicating a significant increase in stockpiles, the crude oil price has reached levels not witnessed since November of the prior year.

Energy Markets Key Points- API

In the Energy Markets, Key Points, The American Petroleum Institute (API) report reveals that storage saw an addition of 4.067 million barrels during the week ending on August 4th. This follows a substantial decrease of -15.4 million barrels in the previous week. Market observers are keen on the US Energy Information Agency (IEA) report, scheduled for later today, which could offer insights into the state of oil reserves.

Energy Markets WTI

Currently, the WTI futures contract hovers around US$ 84.50 per barrel, while the Brent contract oscillates around US$ 87.50 per barrel.

Energy markets have experienced an uptick in activity due to a surge in liquefied natural gas (LNG) prices. This surge is attributed to potential strike action by Woodside Energy Group and Chevron in Australia, where operations in the northwest region play a significant role in global markets.

Currency markets have maintained relative stability leading up to Thursday, although the Japanese Yen has encountered challenges once again. USD/JPY is making gains above 144.00, and EUR/JPY has achieved a new 15-year high, surpassing 158.00.

The weakening Yen has negatively impacted Japanese banking stocks. Among the major indices, Hong Kong’s Hang Seng Index (HSI) has displayed the most notable movement, experiencing a decline of approximately 1%.

At the time of writing, spot gold remains near overnight lows, priced at US$ 1,916.

Market focus is directed toward the upcoming US CPI report, and there is also anticipation regarding statements from various Federal Reserve speakers, which could potentially trigger market fluctuations.

WTI Crude Oil Technical Analysis Overview

The WTI futures contract maintains its upward trend channel after successfully surpassing several resistance levels in recent sessions.

Recent price action has led to the 21-day simple moving average (SMA) crossing above the 260-day SMA, forming a Golden Cross. This occurrence could suggest ongoing bullish sentiment.

In terms of potential support, it may be found at recent lows of 49.90 and 78.69. Further support might emerge around the 77.33 breakpoint and the previous low at 73.82. Additionally, these levels coincide with the presence of the 55- and 100-day SMA, which could serve as supportive factors.

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