Crude Oil in Narrow Range with Markets Assessing Middle East, China Outlook
Crude Oil finds a floor and stabilizes for now on Thursday after a four-day losing streak, which currently still accounts for a nearly 7% loss in the week. The floor that starts to form comes with traders doubting if Israel’s Prime Minister Benjamin Netanyahu will uphold his promise to the United States (US) not to attack Iranian oil installations. An additional support came on the back of the overnight stockpile weekly numbers from the American Petroleum Institute (API), which came in at a surprise drawdown of 1.58 million barrels in the week ending on October 11 compared to an expected build of 2.3 million barrels.
The US Dollar Index (DXY), which tracks the performance of the Greenback against six other currencies, is gearing up for a volatile session ahead. Besides a bulk load of US data, the European Central Bank (ECB) is set to deliver a 25 basis point interest rate cut. With the core countries in the Eurozone struggling, it will be important to see how ECB President Christine Lagarde will want to try and avoid a Euro meltdown.
At the time of writing, Crude Oil (WTI) trades at $70.00 and Brent Crude at $74.09
Source : Fxstreet
