empty
28.01.2025 09:22 AM
WTI Oil Holds Its Ground, Fearing a Collapse

This image is no longer relevant

The hydrocarbon markets are under pressure, trying to cope with the current volatility. West Texas Intermediate (WTI) crude oil prices, which have already declined, are facing additional pressure. However, WTI is attempting to stabilize and avoid dropping to lower levels.

On Tuesday, January 28, WTI, the benchmark crude oil in the U.S., was trading near $73.00 per barrel. Futures for this light crude saw a considerable decline. On the New York Mercantile Exchange (NYMEX), WTI crude oil futures for March delivery were priced at $73.16 per barrel, with American crude briefly dipping by 0.01%. Despite this, support was observed near $73.08, while resistance was established at $76.00 per barrel.

In contrast, Brent crude futures for April delivery on ICE saw a slight increase of 0.01%, reaching $76.19 per barrel. The price difference between Brent and WTI contracts was recorded at $3.03 per barrel. Additionally, the USD Index futures, which track the dollar's performance against a basket of six major currencies, rose by 0.49%, reaching a value of $107.69, as noted by experts.

This image is no longer relevant

Analysts report that WTI crude prices are facing pressure due to uncertainty surrounding U.S. President Donald Trump's tariff plans. Weak economic data from China is further complicating the situation.

Over the weekend, Trump unsettled the markets by threatening to impose tariffs on goods from Colombia and indicated he may take similar actions against China, Canada, Mexico, and the European Union. Additionally, he expressed his intention to pressure Saudi Arabia and OPEC to reduce oil prices. This uncertainty regarding the effects of Trump's proposed tariffs is heavily affecting WTI prices.

Adding to the complexity is the new administration's energy policy, which could significantly destabilize WTI prices in the near future. Financial analyst David Eng points out that WTI and Brent prices were already volatile and are now under added pressure as the market reacts to recent developments in U.S. trade policy. Eng noted, "While the tariffs that the Trump administration threatened against Colombia were short-lived, similar trade actions could trigger unrest in global markets."

The emergence of the Chinese startup DeepSeek has added fuel to the fire, as it has surpassed ChatGPT in both popularity and market capitalization. DeepSeek's disruptive entry into the market has shocked investors, leading to a decline in most stock prices. Additionally, this low-cost artificial intelligence (AI) model has raised concerns about the energy demand of data centers.

This week, market participants are closely watching the Federal Reserve's meeting scheduled for Wednesday, January 29. The Fed is expected to announce its decision regarding interest rates. Experts believe that, given the current uncertainty, the U.S. central bank will likely keep the key interest rate unchanged.

Oil traders are particularly focused on the January FOMC meeting for insight on future monetary policy. A hawkish stance from the Fed could pressure economic growth and diminish expectations for WTI oil demand. Conversely, a dovish approach from the central bank could support oil prices in the near term.

Larisa Kolesnikova,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

US Market News Digest for March 20

Although the S&P 500 shows optimism, its growth since March 14 has been viewed as more of a correction. A move toward the target range of 5,881–5,910 becomes more likely

Ekaterina Kiseleva 11:26 2025-03-20 UTC+2

Gold on Fire: Ounce Breaks $3,057, Indexes Also Up

Fed Leaves Rates Unchanged, As Expected Central Bank to Reduce Balance Shelf Life Powell Signals Impact of Tariffs Is Difficult to Determine Gold Hits Record High of $3,057.21 an Ounce

Thomas Frank 10:26 2025-03-20 UTC+2

US Market News Digest for March 19

Nvidia, which should have been celebrating the start of its annual developer conference, saw its shares fall instead. Tesla, still reeling from Elon Musk's latest adventures, took a hit from

Natalia Andreeva 10:52 2025-03-19 UTC+2

Markets in fear: Nasdaq plunges 1.71% while gold hits record highs

Tech stocks sink as gold surges to a new record Nvidia dropped as the conference annual of software developers kicked off. Tesla fell after RBC cut its price target

09:35 2025-03-19 UTC+2

Markets in fear: Nasdaq plunges 1.71%, gold hits record highs

Nvidia falls as annual software developers conference begins Tesla falls after RBC cuts price target Gold hits all-time high of $3,038.90 an ounce Alphabet falls after $32 billion deal

Thomas Frank 06:48 2025-03-19 UTC+2

US Market News Digest for March 18

February data revealed a 0.2% increase in US retail sales, signaling robust consumer activity. However, New York's manufacturing activity declined in March, pointing to localized economic weakness. Despite these mixed

Ekaterina Kiseleva 13:51 2025-03-18 UTC+2

EUR/USD Pauses as S&P 500 Forecasts Worsen – How to Find Balance?

The global market is currently struggling to find balance in key currency pairs and stock instruments. This is particularly challenging given the recent decline of the euro and the weakness

Larisa Kolesnikova 07:52 2025-03-18 UTC+2

Global Market Dynamics: China, the US and AI Are Driving New Trends

Intel rises after a report that the new CEO plans to reorganize manufacturing and artificial intelligence operations. February retail sales rise 0.2%. New York manufacturing activity fell in March. Hong

05:16 2025-03-18 UTC+2

Global Markets in Action: China, US, and AI Set New Trends

Intel Gains After New CEO Plans AI Manufacturing and Operations Overhaul February Retail Sales Up 0.2% New York Manufacturing Activity Falls in March Hong Kong Stocks, Kiwis Gain on China

Thomas Frank 04:59 2025-03-18 UTC+2

US Market News Digest for March 17

US markets rally on Friday: S&P 500 gains 2.1%, Nasdaq Composite rises 2.6% The US stock market ended the week on a high note, as if the recent turbulence never

Natalia Andreeva 14:04 2025-03-17 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.