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

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 lower PPI indicated persistent sluggishness in business demand.
Iraq's Oil minister Hayan Abdul Ghani committed to the voluntary Oil production cuts agreed upon by the OPEC.

Akhtar Faruqui FXStreet

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

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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