{"id":56723,"date":"2023-02-23T16:32:02","date_gmt":"2023-02-23T14:32:02","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=56723"},"modified":"2025-10-17T12:51:20","modified_gmt":"2025-10-17T09:51:20","slug":"wti-on-track-to-record-second-weekly-loss-oil-report","status":"publish","type":"post","link":"https:\/\/www.smartindonesiafx.id\/ru\/wti-on-track-to-record-second-weekly-loss-oil-report\/","title":{"rendered":"WTI on track to record second weekly loss | Oil report"},"content":{"rendered":"

WTI<\/strong> is on track to finish its second consecutive week<\/a> in the reds and trades near levels once seen before at the start of the month. Crude<\/strong> prices have been under pressure mainly from Russia\u2019s output<\/strong> \u0438 export<\/strong> cuts<\/strong> announcement, alongside weakening demand<\/strong> for oil across the US evident from another large buildup in API inventories<\/strong> over the past week. Keeping crude<\/strong> prices afloat has been the renewed optimism surrounding China\u2019s reopening<\/strong> alongside upgraded forecasts by IEA and OPEC<\/strong> in regards to global growth demand<\/strong> for 2023. In this report we aim to shed light on the catalysts driving WTI\u2019s price, assess its future outlook and conclude with a technical analysis.<\/p>\n\n\n\n

Russia seen ramping up output cuts<\/strong><\/h2>\n\n\n\n

Last week a report from Reuters pointed out that Russia will cut its crude production by 500 thousand barrels per day in March, accounting for approximately 5% of its output, as a response to the West imposing a price cap<\/strong> on Russian oil and oil related products. The G7, the European Union and Australia agreed to ban the use of Western-supplied maritime insurance, finance and brokering for seaborne Russian oil<\/strong> priced above $60 per barrel. Earlier today, another Reuters report indicated that Russia plans to cut oil exports<\/strong> towards western ports by up to 25% in March and it\u2019s in essence attempting to revamp its output cuts<\/strong> in to bump up its own crude prices<\/strong>. Russia has so far managed to re-route exports towards the east after the European Union\u2019s sanctions<\/strong> and the G7\u2019s price cap<\/strong>, primarily targeting India and China who are expected to dominate global growth expectations<\/strong> this year. Last week the International Energy Agency raised its expectations for global oil demand<\/strong> in 2023 to 2 million barrels per day (bpd), with the rise being of about 100k bpd. The rise seems to be related to the reopening of China<\/strong>, and its characteristic, that IEA was reported stating that “The risk-averse climate of recent months subsided on optimism that China’s reopening would bolster global growth. Adding to the more upbeat mood was a distinct improvement in Europe’s economic outlook, buttressed by the spectacular slump in natural gas prices”.<\/p>\n\n\n\n

API records second straight week of build ups, EIA data incoming<\/strong><\/h2>\n\n\n\n

Yesterday, the weekly API crude oil<\/strong> inventories<\/strong> report pointed out a buildup of almost 10 million barrels in stocks, exceeding expectation for a mere increase of 1.2 million. The results represent the second straight week of large inventory<\/strong> buildups<\/strong> and could be one of the reasons that dragged WTI<\/strong> price lower during yesterday\u2019s session. Later today, the updated record from EIA\u2019s weekly crude inventories<\/strong> is due and is expected to capture energy traders\u2019<\/strong> attention. According to forecasts the market anticipates that EIA\u2019s stocks<\/strong> would increase by 2 million barrels after last week\u2019s blowout 16-million-barrel buildup. Should that be the case that may provide some support for WTI<\/strong>, however we must point out that the inventory figure may end up being much higher than expectations, if we draw inferences from yesterday\u2019s API<\/strong> release<\/strong>. Nevertheless, we must note that currently EIA\u2019s inventories<\/strong> have been piling up<\/strong> for the past 8 weeks which signals consistent weakened demand<\/strong> for crude<\/strong> and increases the probabilities for the extension of WTI prices<\/strong> towards the downside<\/strong>. Lastly, we would note that last Friday the Baker Hughes<\/strong> oil rig count showed that the number of active oil rigs<\/strong> in the US has dropped by a count of 2 reaching a total of 607, which could serve as another clear indication for a slowdown in demand<\/strong>.<\/p>\n\n\n\n

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BRENTCash Daily<\/strong><\/strong><\/h3>\n\n\n\n
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