WTI sits near two-week high, just below $61.00 as traders await US-China trade deal details
WTI enters a bullish consolidation phase near a two-week high amid mixed fundamental cues.
The US-China trade deal optimism helps ease demand concerns and supports the black liquid.
Easing US recession fears and the Fed’s hawkish pause benefits the USD and caps the commodity.
West Texas Intermediate (WTI) US Crude Oil prices rise to a nearly two-week high during the Asian session on Monday, though bulls struggle to find acceptance or build on the momentum beyond the $61.00 mark. The commodity currently trades with a mild positive bias just below the said handle as traders keenly await the joint statement from the US and China on trade talks.
The White House announced on Sunday that a trade deal with China had been reached following the high-stakes meeting in Switzerland over the weekend. The positive development helps ease demand concerns and acts as a tailwind for Crude Oil prices. However, neither side mentioned an agreement to cut US tariffs of 145% on Chinese goods and China's 125% tariffs on US goods. This, in turn, forces bullish traders to refrain from positioning for any meaningful upside and wait for further details before placing fresh directional bets.
Meanwhile, the trade optimism helps ease market concerns about a recession in the US. This, along with the Federal Reserve's (Fed) hawkish pause earlier this month, assists the US Dollar (USD) to stand firm near a multi-week high touched on Friday. Apart from this, the OPEC+ decision to speed up output increases continues to stoke fears of oversupply and contributes to capping the upside for Crude Oil prices. That said, expectations for tighter US supplies, along with persistent geopolitical risks, act as a tailwind for the black liquid.
This, in turn, warrants some caution before confirming that the commodity's bounce from the vicinity of the $55.00 psychological mark, or a nearly one-month low touched last Monday, has run out of steam. Traders now look forward to this week's release of US inflation figures, which, along with Fed Chair Jerome Powell's appearance on Thursday, will drive the buck and provide some meaningful impetus to Crude Oil prices.
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