official Daily Market Analysis From Forexmart.eu

[KostiaForexMart]

WTI Oil Holds Its Ground, Fearing a Collapse

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.

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.
More analytics on our website: bit.ly/3VobLUv

[KostiaForexMart]

The main events by the morning: January 29

The European Union plans to abandon Russian aluminum within a year. The EU intends to introduce a phased ban on imports of Russian aluminum as part of the 16th package of sanctions. Also, in accordance with the future package of measures, 15 more Russian banks may be disconnected from SWIFT and sanctions may be imposed affecting 70 Russian vessels. 

The Czech Republic may become the first European country with cryptocurrency in reserves. The head of the Czech National Bank, Ales Michl, plans to invest part of the country's reserves in bitcoins, which could make the bank the first central bank in the West with crypto assets. He intends to propose to the board of directors to invest up to 5% of the reserves, estimated at $140 billion, in cryptocurrency. 

Trump is still aiming to impose trade duties on Canada and Mexico from the beginning of February. This was announced by White House press Secretary Carolyn Levitt. According to her, the president confirmed that the date of February 1 is still considered as the deadline for the introduction of these restrictive measures. In addition, Levitt clarified that similar steps could be taken against China.

Scott Bessent, an American financier, became the 79th Secretary of the Treasury of the United States. He will have to fulfill key tasks: to maintain the stability of the national economy, promote its growth and create new jobs for citizens. Previously, he headed the British division of Soros Fund Management, founded the funds Bessent Capital and Key Square Group. Bessent's fortune is estimated at 700 million. 

Protests organized by the Alliance for Preventive Economic Day will be held in Germany. Actions in large cities are designed to draw attention to the crisis and demand reforms: lower taxes, bureaucracy, and energy prices. Protests will start in Berlin at the Brandenburg Gate. The Alliance warns that the German economy is experiencing stagnation, accompanied by an outflow of domestic companies and a reduction in interest from international investors.
More analytics on our website: bit.ly/3VobLUv