- Oil markets turn lower after large DOE inventory build
- Oil.WTI technical overview
- US GDP drops as forecast but USD moves near 6-week high
- European inflation slows down and Euro breaks key support
- Bitcoin moves lower as EU announce they could regulate cryptos
A larger than expected rise in US oil inventories has weighed on the price of crude this afternoon, with the Brent market falling back below the $66 handle. The print of +3.0M in the headline reading was the second largest increase since September and provides further evidence of US stock piles rising as the price has increased.
The US economy grew slightly slower than previously thought in the final quarter of last year, according to the latest data release. The preliminary, which is the second of three readings, print came in at 2.5% Q/Q (in annualised terms), down from the 2.6% seen from the advance figure. Despite this drop in growth the US dollar has reacted positively, moving to its highest level in almost 6 weeks in edging above 90.50.
The newest data on inflation coming from the European economy showed that price growth eased the third month in a row reflecting mainly adverse base effects and matching the consensus. The weakest growth since 2016 seems to offer President Draghi more reasons to water down hawkish remarks expressed by some members of the Governing Council.
After striking a $11k mark the Bitcoin price has retreated below this level in subsequent trade and all 5 crypto markets are currently in the red. According to Reuters the European Union seems to be geared up for regulation of cryptocurrencies even at the federal level once other solutions are not found and implemented. During the discussion hosted by Valdis Dombrovskis there were many talks about cryptocurrencies. Conclusions suggest that Europe must adapt to blockchain technology in order to remain competitive.