09 Jan 2025

• WTI price attracts some sellers to $72.40 in Thursday’s Asian session. 
• The firmer USD weighs on the WTI, but the fear of supply disruptions might cap its downside. 
• US crude oil inventories declined by 959,000 last week, according to the EIA.
• West Texas Intermediate (WTI), the benchmark for U.S. crude oil, is currently trading at approximately $72.40 on Thursday. The price of WTI has experienced a slight decline, influenced by the strengthening of the U.S. Dollar (USD). Nevertheless, concerns regarding potential supply disruptions may limit the extent of this decline.
  
  The appreciation of the dollar is creating some downward pressure on oil prices, as it renders crude oil more expensive for investors holding other currencies. Tamas Varga, an analyst at oil brokerage PVM, noted, "The dollar's safe haven status is increasingly valued amid rising fears of renewed inflationary pressures in the U.S."
  
  U.S. crude oil inventories have decreased for the seventh consecutive week, which could provide support for WTI prices. According to the weekly report from the U.S. Energy Information Administration (EIA), crude oil stockpiles in the United States fell by 959,000 barrels for the week ending January 3, compared to a decline of 1.178 million barrels the previous week. Market expectations had predicted a reduction of 250,000 barrels.
  
  Furthermore, the introduction of new sanctions on Iranian and Russian crude exports may restrict global oil supplies and elevate prices. The Biden administration is set to implement additional sanctions on Russian oil exports prior to Donald Trump's inauguration on January 20.
  
  Oil traders are expected to seek further insights from Federal Reserve communications later on Thursday. Attention will also be focused on the U.S. employment data for December, scheduled for release on Friday. Any indications of a robust labor market could strengthen the dollar and subsequently exert downward pressure on the price of this USD-denominated commodity in the short term.