WTI crude oil per day
One of the driving factors in the April CPI report was rising gasoline prices, with crude hitting $88 in early April, but that trend continues to reverse with WTI crude trading now below $77.
In the last few minutes, WTI crude just touched the March/May low near $76.79. A close below this floor would still require clearing the late February lows at $75.78 and the $75.00 figure, but there is some sort of head-and-shoulders top in play and angst about of OPEC. A breakdown of the cartel could help return oil to December lows near $68, and that is also the measured goal of the H&S.
With this drop in oil prices, the Canadian dollar is under some pressure. USD/CAD is at the day’s high, up 11 pips at 1.3658 after falling as low as 1.3592 following US CPI data.
Weekly US inventory data will be released at the bottom of the hour. Private data showed:
- Raw -3104K
- Gasoline -1269K
- Distillates +349KJ
- Cushing-601K
Expectations regarding the official report:
- Raw -543K
- Gasoline +537K
- Distillates +824K
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