WTI posts fresh six-week high near $81.00 on geopolitical uncertainty and firm Fed rate-cut bets


  • WTI price trades close to a six-week high on multiple tailwinds.
  • Firm Fed rate-cut prospects improve the Oil demand outlook.
  • Geopolitical tensions in the Middle East and Europe have raised supply concerns.

West Texas Intermediate (WTI), futures on NYMEX, hold gains near fresh six-week high near $80.70 in Wednesday’s Asian session. The Oil price strengthens due to an improvement in expectations that the Federal Reserve (Fed) will start reducing interest rates from the September meeting and deepening tensions in the Middle East and Europe.

The CME FedWatch tool shows that traders see a 67% chance of the Fed reducing key rates in September. Traders are also pricing in two rate cuts, this one against one signaled by policymakers in their latest interest rate projections.

Increased confidence in investors for Fed rate cuts in September is the outcome of the soft United States (US) Consumer Price Index (CPI) report for May, which indicated that the progress in the disinflation process has resumed. Also, lower-than-expected growth in the US Retail Sales for May has boosted early rate-cut expectations. The Retail Sales data excluding automobiles- a measure of consumer spending- contracted for the second straight month by 0.1%.

The high possibility of early rate cuts by the Fed is a favorable situation for the Oil price, as it improves sentiment for the global economic outlook.

On the geopolitical front, Ukraine’s drone attack on an oil terminal in Russia's southern port of Azov and the announcement of an all-out war by Israeli Foreign Minister Israel Katz against Lebanon's Hezbollah have triggered supply concerns.

Going forward, the next trigger for the Oil price will be Energy Information Administration (EIA) Crude Oil Stocks Change data for the week ending June 14, which will be published on Thursday due to a holiday in US markets on account of Juneteenth.

WTI US OIL

Overview
Today last price 80.68
Today Daily Change -0.03
Today Daily Change % -0.04
Today daily open 80.71
 
Trends
Daily SMA20 77.28
Daily SMA50 79.5
Daily SMA100 79.32
Daily SMA200 79.12
 
Levels
Previous Daily High 80.78
Previous Daily Low 79.1
Previous Weekly High 78.98
Previous Weekly Low 75.03
Previous Monthly High 81.25
Previous Monthly Low 76.04
Daily Fibonacci 38.2% 80.14
Daily Fibonacci 61.8% 79.74
Daily Pivot Point S1 79.62
Daily Pivot Point S2 78.52
Daily Pivot Point S3 77.94
Daily Pivot Point R1 81.29
Daily Pivot Point R2 81.87
Daily Pivot Point R3 82.97

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD tests daily lows near 1.0350 on NFP

EUR/USD tests daily lows near 1.0350 on NFP

The buying bias in the Greenback gathers extra pace on Friday after the US economy created fewer jobs than initially estimated in January, dragging EUR/USD to the area of new lows near 1.0350.

EUR/USD News
GBP/USD flirts with daily lows near 1.2420, Dollar picks up pace

GBP/USD flirts with daily lows near 1.2420, Dollar picks up pace

The continuation of the rebound in the US Dollar motivates GBP/USD to accelerates its losses and revisit the 1.2420 area, or daily lows, following the release of US NFP in January.

GBP/USD News
Gold tests fresh lows near $2,860 after NFP

Gold tests fresh lows near $2,860 after NFP

Gold prices trim their early advance on Friday, deflating to the vicinity of the $2,860 region per ounce troy following the publication of the US labour market report in January.

Gold News
Key takeaways from the January Payrolls report

Key takeaways from the January Payrolls report

The January payrolls number was weaker than expected at 143k, vs a reading of 175k. However, to counteract the downside surprise in the NFP number, the unemployment rate fell to 4% from 4.1%, and average wage data jumped by 0.5% on the month, to 4.1%, the market had been looking for a decline to 3.8%.

Read more
Top Trumps: The global economy’s House of Cards

Top Trumps: The global economy’s House of Cards

The year has barely started and we are learning the hard way what Donald Trump’s second term in office means for markets, analysts and global policymakers. It's like living through an episode of the political thriller, House of Cards.

Read more
The Best Brokers of the Year

The Best Brokers of the Year

SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025