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Oil Gains Amid Supply Uncertainty and Mixed Data | 8th October 2025

Oil Gains Again Oil prices found renewed strength on Tuesday, with WTI crude climbing toward the $62.00 mark amid mixed U.S. API inventory data and lingering supply uncertainty. Traders responded to a modest draw in crude stockpiles, while OPEC+’s cautious stance on production cuts helped stabilize sentiment across energy markets. The rebound in oil also supported select commodity-linked currencies, though broader FX moves remained influenced by diverging central bank outlooks and global risk sentiment. WTI Crude Oil Forecast (USOIL) Current Price and Context WTI crude oil trades near $62.00, edging higher as traders react to mixed U.S. API inventory data and cautious optimism surrounding global demand recovery. The modest rebound follows OPEC+’s denial of a major production hike, which has helped restore near-term confidence in supply management. Key Drivers Geopolitical Risks: Ongoing tensions in the Middle East and uncertain shipping routes continue to influence risk sentiment in oil markets. US Economic Data: Mixed API data and anticipation for EIA inventory figures shape short-term volatility. FOMC Outcome: Expectations of potential Fed easing support broader commodities by weakening the USD outlook. Trade Policy: Stable trade conditions between the U.S. and China limit downside risks to oil demand. Monetary Policy: Central banks’ gradual shift toward easing bolsters commodities as inflation hedges. Technical Outlook Trend: Bullish momentum persists after reclaiming key support near $61.50. Resistance: $62.80 followed by $63.50. Support: $61.20 and $60.60. Forecast: WTI likely to trade between $61.20–$63.50, with upside favored if EIA confirms lower inventories. Sentiment and Catalysts Market Sentiment: Cautiously bullish as traders expect limited OPEC+ supply increases. Catalysts: EIA data, OPEC+ commentary, and broader risk sentiment shifts could determine short-term direction. Japanese Yen Forecast (USD/JPY) Current Price and Context The Japanese Yen remains weak, with USD/JPY hovering near 148.00, as uncertainty over a potential BoJ rate hike persists. Investors are pricing in prolonged monetary divergence between Japan and its peers, particularly as the U.S. Dollar regains strength. Key Drivers Geopolitical Risks: Global risk-on sentiment reduces demand for safe-haven currencies like the Yen. US Economic Data: Positive U.S. data supports Treasury yields, widening the rate gap with Japan. FOMC Outcome: Markets expect the Fed to stay cautious, limiting sharp USD pullbacks. Trade Policy: Stable trade flows reduce demand for Yen-based safe havens. Monetary Policy: BoJ’s reluctance to tighten policy continues to weigh on the Yen. Technical Outlook Trend: Bullish for USD/JPY; Yen weakness remains dominant. Resistance: 148.50 and 149.10. Support: 147.60 and 147.00. Forecast: USD/JPY may test 149.00 if yields stay firm and BoJ remains dovish. Sentiment and Catalysts Market Sentiment: Bearish for Yen as fiscal easing bets overshadow tightening hopes. Catalysts: BoJ commentary, U.S. Treasury yield trends, and risk sentiment shifts. Australian Dollar Forecast (AUD/USD) Current Price and Context The Australian Dollar trades softer around 0.6530, pressured by a decline in monthly building approvals and renewed strength in the U.S. Dollar. Risk appetite remains fragile as markets digest weaker domestic data and await further signals from China. Key Drivers Geopolitical Risks: Cautious tone in Asia-Pacific trade amid global political uncertainty. US Economic Data: Firm U.S. indicators underpin the greenback, weighing on AUD. FOMC Outcome: Expectations for Fed rate cuts in late Q4 limit AUD downside. Trade Policy: Stable Australia-China trade ties help contain deeper losses. Monetary Policy: RBA remains cautious, signaling data dependency before policy moves. Technical Outlook Trend: Slightly bearish but stabilizing. Resistance: 0.6560 and 0.6600. Support: 0.6500 and 0.6470. Forecast: AUD/USD may consolidate between 0.6470–0.6600, awaiting stronger catalysts. Sentiment and Catalysts Market Sentiment: Mixed, with risk tone and U.S. Dollar strength dictating direction. Catalysts: China data releases, RBA remarks, and U.S. inflation readings. USD/CAD Forecast Current Price and Context USD/CAD holds firm around 1.3950, supported by the U.S. Dollar’s rebound despite growing odds of Fed rate cuts. Weaker oil prices earlier in the week also contributed to CAD softness, while the BoC maintains a dovish tone. Key Drivers Geopolitical Risks: Oil market fluctuations tied to Middle East tensions affect CAD sentiment. US Economic Data: Mixed data adds uncertainty to USD trajectory but keeps it supported. FOMC Outcome: Markets price in rate cuts but limited near-term action. Trade Policy: Stable U.S.-Canada trade environment provides a buffer for CAD. Monetary Policy: BoC remains cautious amid weak growth and subdued inflation. Technical Outlook Trend: Neutral to slightly bullish for USD. Resistance: 1.3980 and 1.4020. Support: 1.3900 and 1.3850. Forecast: USD/CAD expected to stay range-bound 1.3850–1.4000, awaiting oil direction. Sentiment and Catalysts Market Sentiment: Stable but leaning bullish for USD as oil volatility persists. Catalysts: Oil price moves, BoC commentary, and upcoming U.S. CPI data. AUD/NZD Forecast Current Price and Context AUD/NZD trades near 1.1450, marking a three-year high after the RBNZ’s dovish policy decision. Diverging monetary paths between the RBA and RBNZ have fueled the cross’s upward momentum, highlighting the strength of the Australian economy relative to New Zealand’s. Key Drivers Geopolitical Risks: Limited; regional stability allows focus on central bank divergence. US Economic Data: Indirectly supports AUD/NZD via broader USD sentiment. FOMC Outcome: Minimal direct impact; focus remains on local policy divergence. Trade Policy: Consistent trade relations within Oceania provide steady support. Monetary Policy: RBNZ’s dovish stance contrasts RBA’s steady policy tone, lifting AUD/NZD. Technical Outlook Trend: Strongly bullish. Resistance: 1.1470 and 1.1500. Support: 1.1400 and 1.1360. Forecast: Momentum favors continued upside toward 1.1500, barring risk sentiment reversal. Sentiment and Catalysts Market Sentiment: Bullish amid widening policy divergence. Catalysts: RBA and RBNZ speeches, economic data surprises, and regional trade headlines. Wrap-up As markets digest the latest oil inventory data and watch for upcoming EIA reports, traders are likely to stay alert to OPEC+ supply cues and global demand signals. The interplay between energy prices, inflation expectations, and monetary policy remains a key driver across assets, with commodity currencies and bond yields reacting closely to oil’s trajectory. Ready to trade global markets with confidence? Join Moneta Markets today and unlock 1000+ instruments, ultra-fast execution, ECN spreads from 0.0 pips, and more! Start now with Moneta Markets!

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Publication date:

2025-10-08 13:17:44 (GMT)

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