US crude oil stocks dropped by 2.98 million barrels as of October 17, a shift from the previous rise of 3.524 million barrels. This change highlights new trends in the oil supply market. With trade tensions easing between the US and China, WTI prices have climbed above $57.50. Meanwhile, a stronger US Dollar has affected major currency pairs, causing declines in GBP/USD and EUR/USD.

Gold And Bitcoin Trends

Gold has dipped, hitting multi-day lows below $4,100 per troy ounce. Bitcoin is also not performing well, trading around $111,000, despite expectations for future recovery. The global economy seems to be in better shape than expected, but there are still concerns about deeper issues. Bitcoin’s increasing use by companies and governments shows a growing trend, even as its inflows have fallen by 99%. The information shared is for informational purposes only. It is important to do thorough research before making any trading decisions. Participating in open markets carries risks, including potential investment losses. FXStreet and its authors are not responsible for any errors or financial losses.

Surprise Drawdown In Oil Inventories

The unexpected decrease in crude oil inventories by nearly 3 million barrels indicates rising demand. This aligns with OPEC+ maintaining supply discipline in 2024 and 2025, which keeps the market tight. This could be a positive sign for WTI futures, making long positions or call options appealing in the coming weeks. The strengthening U.S. dollar puts pressure on other major currencies, like EUR/USD and GBP/USD, which are showing weakness. This dollar strength is backed by U.S. inflation data, which remains above the Federal Reserve’s target. The latest CPI for September 2025 was 3.1%. If the Fed maintains a higher interest rate environment, traders might consider buying put options on Euro or Pound futures to take advantage of further declines. Gold has pulled back after a strong rise towards $4,100, following its breakout past the $2,500 resistance level in 2024. This drop seems to be in response to the strong dollar, not a loss of gold’s fundamental value amid ongoing economic uncertainty. Selling cash-secured puts at a lower strike price, like around $3,950, could be a good strategy to collect premiums or buy the asset at a better price. Bitcoin is stabilizing around $111,000, a level reached after strong momentum following the 2024 halving. Its recent underperformance compared to the Nasdaq-100 is notable since they usually move together. This could signal a potential catch-up opportunity, with long-dated call options on Bitcoin futures or ETFs offering significant upside if a rebound happens. There’s a sense of anxious relief in the global economy, which has avoided the deep recession many worried about in 2023 and 2024. However, this stability is delicate, with the CBOE Volatility Index (VIX) around 18, suggesting underlying market tension. Such an environment is ideal for strategies that benefit from volatility, like buying straddles on the S&P 500 ahead of major economic reports. Create your live VT Markets account and start trading now.

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