WTI attracts heavy sellers for the second straight day amid the Israel-Iran ceasefire.
July Fed rate cut bets weigh on the USD, which offers support to the commodity.
Traders look forward to Fed Chair Jerome Powell’s testimony for a fresh impetus.
West Texas Intermediate (WTI) US Crude Oil prices extend the previous day's sharp retracement slide from the $76.75 area, or a five-month peak, and attract some follow-through selling for the second straight day on Tuesday. The commodity, however, trims a part of its heavy Asian session losses to a nearly two-week low and currently trades just above the $66.00 mark, down over 1.30% for the day.
Investors took a sigh of relief in reaction to Iran's restrained strike on a US military base in Qatar, instead of oil tankers in the Strait of Hormuz. Adding to this, US President Donald Trump announced a complete ceasefire between Israel and Iran. This helps ease market worries about supply disruptions from the Middle East – a major oil-producing region – and turns out to be a key factor weighing heavily on Crude Oil prices.
Meanwhile, Traders ramped up their bets for a potential interest rate cut by the Federal Reserve (Fed) in July following the release of mixed US PMIs and dovish-sounding remarks from influential FOMC members on Monday. This, along with receding safe-haven demand, drags the US Dollar (USD) to over a one-week low and benefits the USD-denominated commodities, assisting Oil prices to rebound from the $64.15 area.
Traders now look forward to the US economic docket – featuring the release of the Conference Board's Consumer Confidence Index and the Richmond Manufacturing Index. Apart from this, speeches from influential FOMC members, including Fed Chair Jerome Powell's congressional testimony, will drive the USD. This, along with geopolitical developments, should provide a fresh impetus to Oil prices later during the North American session.
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