WTI snaps the three-day losing streak, holds above $81.00 after Fed rate pause

WTI prices hold positive ground above the $81.00 mark post Federal Open Market Committee (FOMC) meeting.
The FOMC maintained the interest rate unchanged at the 5.25–5.50% range on Wednesday.
The rising Middle East tensions could lead to supply disruptions.

Lallalit Srijandorn FXStreet

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $81.00 so far on Thursday. WTI prices snaps the three-day losing streak after the Federal Open Market Committee (FOMC) meeting decided to pause the rate on Wednesday. However, the weaker Chinese data might dampen the oil demand outlook.

As widely expected, the FOMC maintained the interest rate unchanged on Wednesday. During the press conference, Fed Chair Jerome Powell emphasized the committee's dependence on data and vowed to move cautiously. FOMC opens the door for another rate hike, but the market believes that the hiking cycle is already over, which drags the US Dollar (USD) lower across the board.

Furthermore, the escalating tension in the Middle East might exacerbate the already-existing energy market disruptions caused by Russia's war in Ukraine.

On the other hand, the Chinese manufacturing PMI fell below 50 in October due to slower production and weaker demand. That being said, the downbeat Chinese data adds doubt to recent optimism for a recovery in the world's second-largest economy. It’s worth noting that China is the major oil consumer in the world, and a negative economic outlook could exert pressure on oil prices.

Looking ahead, oil traders will monitor the US weekly Initial Jobless Claims on Thursday. On Friday, the attention will shift to the US Nonfarm Payrolls, which is expected to add 180K jobs in October from 336K in September. These events could significantly impact the USD-denominated WTI price. Oil traders will take cues from the data and find trading opportunities around WTI prices.

WTI US OIL

Overview
Today last price	81.13
Today Daily Change	0.41
Today Daily Change %	0.51
Today daily open	80.72

Trends
Daily SMA20	84.36
Daily SMA50	85.91
Daily SMA100	81.08
Daily SMA200	77.99

Levels
Previous Daily High	83.1
Previous Daily Low	80.12
Previous Weekly High	88.12
Previous Weekly Low	81.91
Previous Monthly High	90.88
Previous Monthly Low	80.52
Daily Fibonacci 38.2%	81.26
Daily Fibonacci 61.8%	81.96
Daily Pivot Point S1	79.53
Daily Pivot Point S2	78.34
Daily Pivot Point S3	76.56
Daily Pivot Point R1	82.5
Daily Pivot Point R2	84.28
Daily Pivot Point R3	85.47

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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