Crude Oil’s price declined during this morning’s 2 sessions as investors remain concerned about yesterday’s inflation data. An expensive US Dollar and high-interest rates are known to pressure the price of Crude Oil. High-interest rates are known to slow economic growth, which tends to result in lower demand for fuel. An expensive US Dollar is also known to pressure prices as foreign buyers have to pay more for the same product. Will this trigger lower demand?
Well, it is also important that traders consider the effect supply can have on the pricing. The US President is preparing to bring 26 million barrels of oil to the market from the strategic reserve. This would bring the reserve to its lowest level since 1983.
Regarding technical analysis, analysts note that speculators should be cautious about the price rejection level. The rejection level formed at $77.67 after the CPI announcement.
Crude Oil 30-Minutes on February 15th
Summary:
- The US Dollar increases in value due to high inflation for January 2022. The US Dollar increased to 103.60 and has increased by 0.36%.
- US inflation is down from 6.5% to 6.4% but is unlikely to satisfy the Federal Reserve.
- UK Inflation drops more than expected reaching a 4-month low. UK inflation reads 10.1%.
- Crude oil declines are the US Dollar increases in value and investors expect a stronger hike from the Fed.
