- WTI prices attract some buyers near $72.90 amid the ongoing Middle East tension.
- The upbeat US economic data might convince the Federal Reserve (Fed) to keep its benchmark rate higher for longer.
- The US launched retaliatory airstrikes on Friday against Iran’s Islamic Revolutionary Guard Corps and allied militias in Iraq and Syria.
Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $72.90 on Tuesday. WTI prices edge higher on the modest decline of US Dollar (USD). The downside of WTI prices might be capped by concerns that tensions in the Middle East and Russia's ongoing invasion of Ukraine could curb global supplies.
The stronger-than-expected US PMI and Nonfarm Payrolls (NFP) data might convince the Federal Reserve (Fed) to keep its benchmark rate higher for longer, which would lift the Greenback broadly and exert some selling pressure on WTI prices. The ISM showed on Monday that the US Services PMI rose to 53.4 in January from 50.5 in December.
On the other hand, the geopolitical tensions in the Middle East might cap the downside of oil prices. The United States started retaliatory airstrikes Friday against Iran's Islamic Revolutionary Guard Corps and associated forces in Iraq and Syria. The attacks, which targeted over 85 locations, were in reaction to the deaths of three US servicemen in a drone strike by Iranian insurgents.
The US launched retaliatory airstrikes on Friday against Iran’s Islamic Revolutionary Guard Corps and allied militias in Iraq and Syria. The airstrikes, which hit more than 85 targets, came in response to the deaths of three US troops in a drone strike by Iran-allied militants. This, in turn, might cap the downside of WTI prices in the near term.
Oil traders will monitor the Chinese Consumer Price Index (CPI) and Producer Price Index (PPI) for January on Thursday. The weaker-than-expected data could weigh on WTI prices, as China is the world's second-largest oil consumer.
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
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.