WTI remains below $68.50 amid firmer US Dollar, OPEC+ meeting in focus
Trending Articles- Gold Price Forecast: PCE Data Weakens Fed Rate Hike Expectations, Can Gold Price Hold Steady at $4,000?
- $4,050: Gold dives to fresh two-week low as Fed rate hike bets boost US Dollar
- Gold Price Forecast: Gold Price Falls Below $4,000, PCE Data May Push Gold Down to $3,900
- Gold Price Trend Forecast: Gold Price Risks Falling Below $4,000, PCE Data Is Key
- Deutsche Bank Slashes Gold Price Forecast by 22%: Wall Street Bulls Retreat, Fed Rate Hike Expectations Become Biggest Drag
- Qatar and Pakistan: High-level committee agrees on roadmap to final deal within 60 days
WTI drops to near $68.25 on a stronger USD in Monday’s early European session.
Improved Chinese economic data and geopolitical risks might cap the WTI’s downside.
Oil traders brace for the OPEC+ meeting on Thursday for fresh impetus.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $68.25 on Monday. The WTI price edges lower as the stronger US Dollar (USD) broadly drags the USD-denominated commodity price lower.
US President-elect Donald Trump's statement that he will impose tariffs has led to fears that it could slow the pace of the Federal Reserve's (Fed) easing cycle, boosting the USD. The rise of the USD against other currencies generally lowers oil demand by making oil more expensive for those who use foreign currencies. According to the CME FedWatch Tool, the money markets have priced in a nearly 67.1% chance that the Fed will cut rates by a quarter point in December, while there is a 32.9% probability that the policy rate will remain unchanged.
The encouraging Chinese economic data released on Monday could provide some support to the black gold, as China is a major consumer of crude oil in the global market. China’s Caixin Manufacturing PMI jumped to 51.5 in November versus 50.3 in October, beating the estimation of 50.5. This growth was driven by the increase in foreign orders since February 2023 and exports.
Furthermore, heightened geopolitical tensions in West Asia raise concerns about supply disruptions from the region, which might lift the WTI price. Iran extended its support to the Syrian government after insurgents took control of Syria’s Aleppo city.
Looking ahead, Oil traders will keep an eye on the OPEC+ (Organization of the Petroleum Exporting Countries, and allies) meeting on Thursday to discuss output policy for 2025. The meeting was originally scheduled for Sunday. "An indefinite delay may be the best case for oil prices, given that earlier rounds of delays by a month or so have failed to drive higher oil prices in line with what OPEC+ intended,” said Tony Sycamore, IG's Sydney-based market analyst.
Read more
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
