• WTI Oil retreats below $82 on hefty increase in US crude stockpiles.  
• Oil traders remain bullish, but the US stockpile build-up is difficult to ignore. 
• The US Dollar Index trades above 104.00 and sees US Dollar bulls digging in their heels.

Oil prices are retreating on Wednesday, with traders gasping for air after seeing the overnight print from the American Petroleum Institute (API), which saw a massive 9.337 million build-up in US stockpiles. A number not to ignore as it means that current production cuts from OPEC could be proven insufficient to keep prices well supported. Meanwhile, commodity analyst Natasha Kaneva from JP Morgan said that Brent futures could jump to $100 after Russia recently asked producers to limit their production in order to comply with OPEC production cut agreements. 

The US Dollar, meanwhile, is in calm water and steady above 104.00 when measured by the US Dollar Index (DXY). Traders are building a fortress above 104.00 in order to defend the level ahead of the US Gross Domestic Product numbers on Thursday and the Personal Consumption Expenditures (PCE) Price Index on Friday. With the market expectations building up towards an upbeat PCE print, markets could see the US Dollar rally into the weekend as investors tune down the number of interest-rate cuts for 2024. 

Crude Oil (WTI) trades at $80.83 per barrel, and Brent Oil trades at $85.29 per barrel at the time of writing.