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The vast majority of retail client accounts lose money when trading CFDs.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
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Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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USOIL Retreats as API Crude Inventories Takes Over 4 Leaps

API Crude Inventories surprises the market with an unexpected rebound as the market awaits the release of US Dec CPI on Thursday.

USOIL – 4-Hour Chart

USOIL – 4-Hour Chart

US oil prices fell on Wednesday after API data pointed to a large weekly build in US crude stockpiles.

US API crude inventories rose by 14.865 million barrels for the week ended Jan 6. The latest crude build compared with the rise of 3.298M barrels reported by the API for the previous week to Dec 30. Prior to that, the industry body reported back-to-back draws of 1.3M barrels and 3.069M barrels during the weeks to Dec 23 and Dec 16, respectively.

Although losses were limited by the prospect of strong demand this year and as the dollar softened on expectations of slower interest rate hikes, the USOIL price was $74 in the Asia trading session after the API report was released.

US crude demand is also expected to recover as the Federal Reserve slows its pace of interest rate hikes. In addition, markets are awaiting the consumer price index that will be released on Thursday.

Upcoming US December Consumer Price Index, the forecast is 6.5%; the previous was 7.1%.

CPI inflation is widely expected to have eased further in December from the prior month, putting less onus on the Fed to keep raising interest rates. However, a sustained downtrend in inflation is expected to spur the Fed into eventually pausing its rate-hike cycle. But given that inflation is still well above the Fed’s annual target range, markets remain uncertain about when the central bank could pause its rate hikes. Suppose the Fed delivered a pause on its rate hikes; the crude demand would increase and support the oil price rebound.

Last Updated: 11/01/2023

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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