WTI struggles for a firm intraday direction, stuck in a range near $73.00/barrel mark
- WTI remains confined in a range and is influenced by a combination of factors.
- Talks of Israel–Hamas ceasefire and a bullish USD cap the upside for Oil prices.
- Uncertainty over the fallout from the Red Sea crisis to help limit deeper losses.
West Texas Intermediate (WTI) US Crude Oil prices struggle to gain any meaningful traction on Tuesday and oscillate in a narrow range through the mid-European session. The commodity currently trades around the $73.00/barrel mark and remains well within the striking distance of a nearly three-week low touched on Monday.
A Middle East trip by top US Diplomat Antony Blinken raised hopes for a de-escalation of the crisis in the major Oil producing region, which, in turn, is seen as a key factor acting as a headwind for the black liquid. Apart from this, concerns about a weaker demand outlook, amid persistent worries about slowing economic growth in China, further contribute to cap gains for Crude Oil prices.
Meanwhile, the incoming US macro data continues to point to a still resilient economy, which gives the Federal Reserve (Fed) more headroom to keep interest rates higher for longer. The hawkish outlook assists the US Dollar (USD) to stand tall near its highest level since November 14 and turns out to be another factor holding back traders from placing bullish bets around the commodity.
The US, however, continues its campaign against Iran-backed Houthis in Yemen, which has been fueling supply concerns and lending support to Oil prices. Market participants now look forward to data published by the American Petroleum Institute (API) on US crude stockpiles for some impetus. In the meantime, Ukrainian drone attacks on the largest oil refinery in Russia could act as a tailwind.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
