WTI under pressure on demand-side despite supply cuts feeding through to data. Fed sombre note leaves markets in limbo and looking to GDP as next guide. WTI is trading at $41.27 at the time of writing in a consolidation of the jittery environment between the $40 and $42 levels. Prices rose slightly on Wednesday, however, after a steep drop in crude inventories. Nonetheless, rallies are capped pertaining to record days for coronavirus cases worldwide. US crude oil inventories fell by 10.6 million barrels last week to 526 million barrels, the Energy Information Administration said, which was the largest drawdown since December. Net US crude imports fell 1 million barrels per day to 1.9 million bpd, Supply cuts agreed in April by theOrganization of the Petroleum Exporting Countries and its allies, finally being realized are likely playing their roll in the data. Energy markets remain bounded by concerns surrounding demand, while at the same time, OPEC+ supply is on the rise and US production has ticked higher as well, keeping expectations in check, analysts at TD Securities said. Looking forward, however, while US production creeps off the lows, we note that the evidence suggests that shale production growth may not see a mass revival just yet. The cost of capital for production has risen, potentially permanently so. This creates a set-up in which energy prices could potentially trade significantly higher in the future. Meanwhile, it was a sombre note from the Fed today. Fed Chair Powell said the central bank will sustain historic monetary policy until it’s confident the economy has navigated through the Covid-19 pullback. “We are committed to using our full range of tools to support the economy in this challenging time,” Powell said. “We have held our policy rate near zero since mid-March and have stated that we will keep it there until we are confident the economy has weathered recent events and is on track to achieve our maximum employment and price stability goals.” For the rest of the week, tomorrow’s release of US Q2 Gross Domestic Produce will provide concrete evidence on how the pandemic has affected activity. We will be able to gauge the magnitude of the output gap that needs to be closed and thus depict a probable scenario for energy demand implications. US Q2 GDP is forecast to fall by a record 35% saar, roughly equating to a 9% QoQ drop. WTI levels FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Forex Today: Fed passes with little notice ahead of Q2 GDP FX Street 3 years WTI under pressure on demand-side despite supply cuts feeding through to data. Fed sombre note leaves markets in limbo and looking to GDP as next guide. WTI is trading at $41.27 at the time of writing in a consolidation of the jittery environment between the $40 and $42 levels. Prices rose slightly on Wednesday, however, after a steep drop in crude inventories. Nonetheless, rallies are capped pertaining to record days for coronavirus cases worldwide. US crude oil inventories fell by 10.6 million barrels last week to 526 million barrels, the Energy Information Administration said, which was the largest drawdown since December. Net… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.