WTI corrects from two-month high near $84.00 amid caution due to Storm Beryl

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

■  WTI price corrects from $84.00 due to uncertainty over the impact of Tropical Storm Beryl.

■  Various US ports were closed on Sunday as a precaution against Storm Beryl.

■  The prospects of Fed rate cuts in September have increased significantly.


West Texas Intermediate (WTI), futures in NYMEX, extend its correction to near $82.20 in Monday’s Asian session after posting a fresh two-month high near $84.00 on Thursday. The Oil price comes under pressure as investors worry about Storm Berly, which could disrupt United States (US) energy supplies.


Should the Tropical Storm Bery turn into a Category two hurricane, a temporary halt could be seen on crude and liquefied natural gas exports, motor fuel deliveries and oil shipments to refineries.


For precautionary purposes, ports of, Houston, Corpus Christi, Galveston, Texas City and Freeport remained close on Sunday.


Meanwhile, Oil demand worries have eased significantly as a rate cut move by the Federal Reserve (Fed) in its September meeting appears to be a done deal. The CME FedWatch tool shows that the probability for Fed reducing interest rates from their current levels in September has increased to 75.8% from 64%, recorded a week ago.


The expectations for the Fed to begin reducing interest rates from September improved after the US Nonfarm Payrolls (NFP) report of June showed that the strength in the US labor market is easing. The report showed that wage growth softened expectedly, the Unemployment Rate increased and payrolls were higher than expectations but lower from downwardly revised May figures.

* 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.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
WTI moves below $67.50 due to Oil output increase, tariff tensionsWest Texas Intermediate (WTI) Oil price edges lower after registering more than 2.5% gains in the previous session, trading around $67.30 per barrel during the Asian hours on Monday.
Author  FXStreet
15 hours ago
West Texas Intermediate (WTI) Oil price edges lower after registering more than 2.5% gains in the previous session, trading around $67.30 per barrel during the Asian hours on Monday.
placeholder
WTI tumbles below $66.00 amid ongoing trade jittersWest Texas Intermediate (WTI), the US crude oil benchmark, is trading around $65.75 during the early Asian trading hours on Friday.
Author  FXStreet
Jul 11, Fri
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $65.75 during the early Asian trading hours on Friday.
placeholder
WTI rises above $67.00 due to rising supply concerns, US tariffs delayWest Texas Intermediate (WTI) Oil price extends its winning streak for the third successive session, trading around $67.60 per barrel during the Asian hours on Wednesday.
Author  FXStreet
Jul 09, Wed
West Texas Intermediate (WTI) Oil price extends its winning streak for the third successive session, trading around $67.60 per barrel during the Asian hours on Wednesday.
placeholder
WTI gains ground above $67.00 amid renewed Red Sea attacksWest Texas Intermediate (WTI), the US crude oil benchmark, is trading around $67.15 during the early Asian trading hours on Wednesday.
Author  FXStreet
Jul 09, Wed
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $67.15 during the early Asian trading hours on Wednesday.
placeholder
WTI drops to near $66.50 due to renewed tariff threats, rising OPEC+ supplyCrude Oil prices fall as renewed United States (US) tariff threats bolster concerns about the global Oil demand.
Author  FXStreet
Jul 08, Tue
Crude Oil prices fall as renewed United States (US) tariff threats bolster concerns about the global Oil demand.