WTI edges lower to near $77.50 due to uncertainties surrounding Oil demand

Source Fxstreet
May 13, 2024 06:15
  • WTI Oil price extended losses as Fed officials indicated higher interest rates for longer, which could dampen Oil demand.
  • The crude Oil prices received pressure as China’s PPI marked the 19th consecutive month of deflation.
  • Iraq's Oil minister Hayan Abdul Ghani committed to the voluntary Oil production cuts agreed upon by the OPEC.

West Texas Intermediate (WTI) crude Oil price have experienced a second consecutive decline, trading around $77.70 per barrel during Monday's Asian session. This downward trend in Oil prices could be attributed to uncertainties surrounding crude Oil demand.

US Federal Reserve (Fed) officials have indicated that interest rates could remain elevated for an extended period, potentially impacting growth and reducing Oil demand in the United States (US), the world's largest Oil consumer. Moreover, Friday's release of the US Consumer Sentiment Index added to evidence suggesting a slowdown in the economy. The index declined to 67.4 in May from April's 77.2, hitting a six-month low and falling short of market expectations.

As reported by Reuters, Neel Kashkari, President of the Minneapolis Federal Reserve (Fed), shared concerns regarding the degree of tightness in monetary policy. In an interview with CNBC on Friday, Kashkari acknowledged that while the criteria for another rate hike are stringent, they cannot be entirely discounted. Additionally, San Francisco Fed President Mary Daly emphasized the importance of sustaining a prolonged restrictive policy to achieve the Federal Reserve's inflation goals.

Moreover, China witnessed another decline in its Producer Price Index (PPI), registering a 2.5% drop. This marks the 19th consecutive month of deflation, indicating persistent sluggishness in business demand in the largest Oil-importing nation. This exerts additional downward pressure on Oil prices.

In the Middle East, as reported by Reuters citing the Iraqi state news agency, Hayan Abdul Ghani, Deputy Prime Minister for Energy Affairs and Minister of Oil of Iraq, affirmed Iraq's commitment to the voluntary Oil production cuts agreed upon by the Organization of the Petroleum Exporting Countries (OPEC). Ghani also expressed Iraq's readiness to cooperate with fellow member nations in endeavors aimed at fostering greater stability in the global Oil markets.

WTI US OIL

Overview
Today last price 77.68
Today Daily Change -0.17
Today Daily Change % -0.22
Today daily open 77.85
 
Trends
Daily SMA20 81.14
Daily SMA50 81.52
Daily SMA100 78.18
Daily SMA200 79.75
 
Levels
Previous Daily High 79.56
Previous Daily Low 77.82
Previous Weekly High 79.56
Previous Weekly Low 76.71
Previous Monthly High 87.12
Previous Monthly Low 80.62
Daily Fibonacci 38.2% 78.48
Daily Fibonacci 61.8% 78.89
Daily Pivot Point S1 77.26
Daily Pivot Point S2 76.67
Daily Pivot Point S3 75.52
Daily Pivot Point R1 79
Daily Pivot Point R2 80.15
Daily Pivot Point R3 80.75

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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