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WTI declines below $72.50 on stronger US Dollar
Thursday, 9 January 2025 09:45 WIB | OIL |Minyak WTI

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $72.40 on Thursday. The WTI price edges lower amid the stronger US Dollar (USD). However, the concerns over supply disruptions might cap the downside for the WTI price.

A strengthening of the Greenback exerts some selling pressure on the black gold as it makes oil more expensive for holders of other currencies. "The dollar's safe haven status is appreciated as fears of renewed U.S. inflationary pressure grow," said Tamas Varga, an analyst with oil broker PVM.

US crude oil inventories fell for a seventh consecutive week, which might support the WTI price. The US Energy Information Administration (EIA) weekly report showed crude oil stockpiles in the United States for the week ending January 3 declined by 959,000 barrels, compared to a fall of 1.178 million barrels in the previous week. The market consensus estimated that stocks would decrease by 250,000 barrels.

Additionally, new sanctions on Iranian and Russian crude exports could limit global oil supplies and boost the black metal price. The Biden administration plans to impose more sanctions on Russia's oil exports ahead of Donald Trump's inauguration on January 20.
Oil traders will take more cues from the Fedspeak later on Thursday. All eyes will be on the US employment data for December, which will be released on Friday. Any signs of a solid labor market could lift the Greenback and weigh on the USD-denominated commodity price in the near term.(Cay) Newsmaker23

Source: Fxstreet

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