WTI continues to be contained within a one-week trading range, although it is moving lower.
The commodity's potential is limited by a slight increase in the USD and easing supply concerns.
However, ahead of the OPEC+ meeting and the US NFP news, bears are hesitant.
West Texas Intermediate (WTI) US Crude Oil prices are down less than 0.50% for the day as we enter the European session on Wednesday, trading just above the mid-$64.00s and staying contained within a well-known range that has been held for the past week or so. Furthermore, it is advisable to exercise care when planning for a robust near-term direction due to a mixed fundamental background.
The ceasefire between Israel and Iran allayed worries about Middle Eastern supply disruptions. Furthermore, one of the main factors driving down the price of crude oil is the Organization of the Petroleum Exporting Countries' and its allies' (OPEC+) anticipated supply increases. In addition, a slight rebound in the value of the US dollar (USD) from its lowest point since February 2022 appears to be hurting the commodity.
However, any significant increase in the value of the dollar should be restrained by the growing consensus that the Federal Reserve (Fed) will soon resume its cycle of rate cuts. Consequently, this ought to bolster commodities denominated in US dollars and curb declines in crude oil prices. Before making new directional bets, traders may also decide to hold off until Thursday, when the highly anticipated US Nonfarm Payrolls (NFP) report is released.
In addition, the July 6 OPEC+ meeting will be the market's main focus, as it is anticipated that the cartel will increase August supply by 411,000 barrels per day. Meanwhile, the US ADP report's release on Wednesday will have a significant impact on the dynamics of the USD price. Furthermore, later in the North American session, the black liquid would receive some boost from the Energy Information Administration's (EIA) official US oil stockpile statistics.
The commodity's potential is limited by a slight increase in the USD and easing supply concerns.
However, ahead of the OPEC+ meeting and the US NFP news, bears are hesitant.
West Texas Intermediate (WTI) US Crude Oil prices are down less than 0.50% for the day as we enter the European session on Wednesday, trading just above the mid-$64.00s and staying contained within a well-known range that has been held for the past week or so. Furthermore, it is advisable to exercise care when planning for a robust near-term direction due to a mixed fundamental background.
The ceasefire between Israel and Iran allayed worries about Middle Eastern supply disruptions. Furthermore, one of the main factors driving down the price of crude oil is the Organization of the Petroleum Exporting Countries' and its allies' (OPEC+) anticipated supply increases. In addition, a slight rebound in the value of the US dollar (USD) from its lowest point since February 2022 appears to be hurting the commodity.
However, any significant increase in the value of the dollar should be restrained by the growing consensus that the Federal Reserve (Fed) will soon resume its cycle of rate cuts. Consequently, this ought to bolster commodities denominated in US dollars and curb declines in crude oil prices. Before making new directional bets, traders may also decide to hold off until Thursday, when the highly anticipated US Nonfarm Payrolls (NFP) report is released.
In addition, the July 6 OPEC+ meeting will be the market's main focus, as it is anticipated that the cartel will increase August supply by 411,000 barrels per day. Meanwhile, the US ADP report's release on Wednesday will have a significant impact on the dynamics of the USD price. Furthermore, later in the North American session, the black liquid would receive some boost from the Energy Information Administration's (EIA) official US oil stockpile statistics.
