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The latest data shows a decrease in US crude oil stock by 2.98 million barrels as of 17th October, contrasting with a previous increase of 3.524 million barrels. This data provides insight into shifting supply dynamics in the crude oil market.
Amid easing trade tensions between the US and China, WTI prices have risen above $57.50. The strengthened US Dollar has impacted various currency pairs, with GBP/USD and EUR/USD showing noted declines.
Gold And Bitcoin Trends
Gold experienced a downward trend reaching multi-day lows below $4,100 per troy ounce. Bitcoin’s performance further lagged behind the Nasdaq-100, trading around $111,000, though future recovery is anticipated.
The global economy is perceived to be doing better than expected, yet concerns linger about underlying changes. Bitcoin’s use in corporate and government treasury reserves highlights a trend, despite inflows dropping by 99%.
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Surprise Drawdown In Oil Inventories
The surprise drawdown in crude oil inventories, with a reported decrease of nearly 3 million barrels against last week’s build, points to strengthening demand. This data is consistent with OPEC+ maintaining supply discipline throughout 2024 and 2025, keeping the market tight. We should consider this a bullish signal, making long positions in WTI futures or buying call options attractive for the coming weeks.
A strengthening U.S. dollar continues to pressure other major currencies, with EUR/USD and GBP/USD showing weakness. This dollar strength is supported by U.S. inflation data that has remained stubbornly above the Federal Reserve’s target, with the last CPI print for September 2025 coming in at 3.1%. As long as the Fed signals a higher-for-longer interest rate environment, derivative traders could look at buying put options on Euro or Pound futures to capitalize on further downside.
Gold has pulled back after its remarkable run toward $4,100, a move that began after it decisively broke the $2,500 resistance level back in 2024. This dip appears to be a reaction to the strong dollar rather than a change in gold’s fundamental appeal amid ongoing economic uncertainty. Selling cash-secured puts at a lower strike price, perhaps around $3,950, could be a strategy to either collect premium or acquire the asset at a better price.
Bitcoin is consolidating around $111,000, a level achieved after the strong bullish momentum following the 2024 halving event. Its current underperformance against the Nasdaq-100 is a notable divergence, as the two have often moved in tandem. This suggests a potential catch-up trade, where long-dated call options on Bitcoin futures or ETFs could offer significant upside if the predicted rebound occurs.
We see a mood of anxious relief across the global economy, which has avoided the deep recession many feared back in 2023 and 2024. However, this stability is fragile, with the CBOE Volatility Index (VIX) hovering around 18, indicating underlying market tension. This environment is prime for strategies that profit from volatility, such as buying straddles on the S&P 500 ahead of major economic reports.
