Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Futures on US West Texas Intermediate Crude Oil rebounded on Tuesday, as market players were buying riskier assets and selling the US Dollar, a traditional safe haven, following a shift in policy framework introduced by the Federal Reserve Bank last week.

The central bank’s policy shift to target average inflation and higher employment suggested that the bank could keep borrowing costs lower for longer, which sent the US Dollar down to lows not seen since April 30th 2018 against a basket of six major currencies. The US Dollar Index (DXY) was retreating 0.37% to 91.81 on Tuesday.

“It (the policy shift) really cements the fact that you’re looking at negative real rates for the U.S. which will not be great for the U.S. dollar. That’s good for commodities,” Louis Crous, chief investment officer at Australia’s BetaShares, said.

A weaker US Dollar makes Oil and other dollar-priced commodities more appealing to international investors.

Additional support for oil markets came after upbeat manufacturing data out of China. The Caixin Manufacturing Purchasing Managers’ Index pointed to the sharpest expansion in Chinese factory activity in almost 10 years in August, as new export orders rose for the first time in 2020.

“Expectations of higher consumption, powered by a China recovery, lifted sentiment and saw both Brent crude and WTI track higher in Asia,” Jeffrey Halley, a senior market analyst at OANDA, said.

“Both contracts are now close to monthly highs and are poised to shake off the range-trading malaise of the past two months.”

As of 9:15 GMT on Tuesday WTI Crude Oil Futures were gaining 0.89% to trade at $42.99 per barrel, while moving within a daily range of $42.77-$43.23. WTI Crude Futures rose 5.81% in August, while marking their fourth straight month of gains.

Brent Oil Futures were edging up 0.35% on the day to trade at $45.72 per barrel, while moving within a daily range of $45.50-$45.90. Brent Oil Futures rose 4.45% in August, while marking their fifth straight month of gains.

Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures

Central Pivot – $42.91
R1 – $43.27
R2 – $43.92
R3 – $44.28
R4 – $44.63

S1 – $42.26
S2 – $41.90
S3 – $41.25
S4 – $40.59

Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures

Central Pivot – $45.77
R1 – $46.29
R2 – $47.03
R3 – $47.55
R4 – $48.08

S1 – $45.03
S2 – $44.51
S3 – $43.77
S4 – $43.04

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Forex Market: USD/CAD daily trading forecastForex Market: USD/CAD daily trading forecast Yesterday’s trade saw USD/CAD within the range of 1.3149-1.3275. The pair closed at 1.3267, surging 0.87% on a daily basis, or at the most considerable rate since October 21st, when it went up 1.24%. The daily high has been the highest level […]
  • Surf Air Mobility appoints new Chief Financial OfficerSurf Air Mobility appoints new Chief Financial Officer Surf Air Mobility Inc, the air mobility platform transforming regional flying through electrification, said on Wednesday that it had appointed Oliver Reeves as its next Chief Financial Officer.Reeves will head the company’s financial […]
  • Natural gas trading outlook: futures rise on warm weatherNatural gas trading outlook: futures rise on warm weather Natural gas gained in early European trading on Monday following a third weekly decline last week as warm weather across many regions of the US spurred stronger cooling demand. However, a certain level of uncertainty of how the weather trend […]
  • USD/JPY remained below the 100.00 levelUSD/JPY remained below the 100.00 level US dollar continued to trade lower against the Japanese yen on Tuesday, after sliding to nearly one-week lows, as a result of the pressured demand for the greenback, following the disappointing existing home sales report, released […]
  • Crude oil trading outlook: futures drop after gains on Ukraine, US crude supplies cap bullish sentimentCrude oil trading outlook: futures drop after gains on Ukraine, US crude supplies cap bullish sentiment During early European trading hours West Texas Intermediate and Brent both lost some of the gains from last session, when a sharp escalation of the tone on the Ukraine crisis prompted Russian President Vladimir Putin to warn of “consequences”, […]
  • Royal Mail to hold Initial Public Offering in coming weeksRoyal Mail to hold Initial Public Offering in coming weeks Royal Mail Group Ltd., the U.K.’s more than 350-year-old postal service, intends to hold an initial public offering of a majority stake in coming weeks to help the company gain a competitive edge against European rivals."This is an […]