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 InstaTrade
© 2007-2025

Recommended Stories

US Market News Digest for July 29

US stock indices showed mixed dynamics: the S&P 500 and Nasdaq posted modest gains, while the Dow Jones declined. Investor attention is focused on the upcoming Federal Reserve decision

Ekaterina Kiseleva 11:30 2025-07-29 UTC+2

Nike rallies, Dow Jones slips, tariffs weigh — key forces shaping markets today

The US and EU have averted a trade war. Nike shares have climbed. US and Chinese officials have resumed trade talks. Tariffs are acting as a drag on both

11:19 2025-07-29 UTC+2

Nike soars, Dow Jones falls, tariffs weigh — what's happening in global markets right now?

US, EU avert trade war with 15% tariff deal Nike shares rise after JP Morgan upgrade China, US officials resume trade talks Analysts warn tariffs are holding back

Thomas Frank 11:05 2025-07-29 UTC+2

US Market News Digest for July 28

US equity indices closed higher, with the S&P 500 and Nasdaq 100 setting new all-time highs following a fresh trade agreement between the United States and the European Union, which

Ekaterina Kiseleva 12:34 2025-07-28 UTC+2

Long-awaited truce and giants earnings: What's in store for financial markets this week?

US and European stock futures jump, euro stabilises after deal US-China talks continue, truce likely to be extended Earnings reports from major companies, Fed and Bank of Japan meetings

Thomas Frank 11:20 2025-07-28 UTC+2

Bitcoin's future predictable? Bitcoin marked by low volatility in dull trading

According to some crypto analysts, the future of the world's first cryptocurrency appears predictable and, to some extent, boring. Experts believe that Bitcoin's use in exchange-traded funds (ETFs) hasn't necessarily

Larisa Kolesnikova 10:40 2025-07-28 UTC+2

Wall Street on edge: Trump's Fed visit, UnitedHealth probe, rising S&P and Nasdaq

Thursday's session ended with record closes for the S&P 500 and Nasdaq. Investor optimism was fueled by strong earnings from Alphabet, boosting appetite for other leading tech names linked

12:05 2025-07-25 UTC+2

US Market News Digest for July 25

US equity benchmarks closed the day mixed: the S&P 500 and Nasdaq posted modest gains, while the Dow Jones edged lower. Investor sentiment remains cautious amid uncertainty over the Fed's

Ekaterina Kiseleva 11:56 2025-07-25 UTC+2

Wall Street on edge: Trump visits Fed, UnitedHealth probe, S&P and Nasdaq grow

Thursday's trading session closed with historic peaks for both the S&P 500 and Nasdaq indices, as standout results from Alphabet sparked renewed excitement for shares in artificial intelligence-driven tech giants

Thomas Frank 11:06 2025-07-25 UTC+2

Always zero tariffs for America and plenty of Bitcoins for president. Traders' calendar on July 24-25

In his characteristic style, Donald Trump presented what he called the "greatest trade deal in history," claiming that Indonesia and Japan had opened their markets to American business

Svetlana Radchenko 12:09 2025-07-24 UTC+2
Can't speak right now?
Ask your question in the chat.
 

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 InstaTrade anyway.

We are sorry for any inconvenience caused by this message.