- WTI edges higher as OPEC+ continues its oil output cuts of 3.66 million barrels per day into 2025.
- Oil prices could face pressure as Fed officials suggested maintaining restrictive monetary policy for now.
- Israeli Prime Minister Benjamin Netanyahu's administration accepted US President Joe Biden's proposal for a Gaza cease-fire on Sunday.
West Texas Intermediate (WTI Oil price grapples to halt its three-day losing streak, trading around $77.10 per barrel during the Asian hours on Monday. Reuters reported on Sunday that the Organization of the Petroleum Exporting Countries and its allies, including Russia (OPEC+), agreed to extend its Oil output cuts into 2025 to support the prices amid sluggish demand growth. OPEC+ decided to prolong the cuts of 3.66 million barrels per day (bpd) until the end of 2025 and extend the cuts of 2.2 million bpd by three months until September 2024.
On Friday, US Personal Consumption Expenditure (PCE) data indicated that price pressures eased in April. Despite this, the report did not prompt a rate cut from the Federal Reserve (Fed), suggesting that the central bank may need more time to achieve its inflation goals. The higher interest rates are negatively impacting the United States's (US) economic outlook and dampening the demand for liquid Gold.
Last week, Federal Reserve (Fed) officials communicated that the central bank might maintain its restrictive policy for an extended period to achieve its 2% inflation target. Atlanta Fed President Raphael Bostic remarked in an interview with Fox Business that the inflation outlook will decline very slowly and emphasized the need for the Fed to remain in a restrictive stance. Additionally, New York Fed President John Williams stated that although inflation is still too high, he believes the current Fed policy is appropriately positioned to gradually bring price growth back to the Fed's target.
Israeli Prime Minister Benjamin Netanyahu's administration reluctantly accepted US President Joe Biden's proposal for a Gaza cease-fire on Sunday. This decision comes amid ongoing attacks in Rafah following intense Israeli airstrikes over the weekend, according to the BBC. Investors will closely watch the developments in these geopolitical tensions, as any signs of escalating risks could potentially drive up crude Oil prices.
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
AUD/USD depreciates due to market caution ahead of US NFP
The Australian Dollar remains subdued against the US Dollar for the second consecutive day on Friday. The AUD/USD pair faces modest headwinds as the USD steadies ahead of the upcoming Nonfarm Payrolls report in the North American session.
USD/JPY: Japanese Yen stands firm near a multi-month high against a broadly weaker USD
The Japanese Yen continues to be underpinned by increasing bets for more BoJ rate hikes. Trade tariff jitters and the risk-off mood further seem to underpin demand for the safe-haven JPY. Expectations for further policy easing by the Fed weigh on the USD and the USD/JPY pair.
Gold price remains depressed ahead of US NFP; trade jitters to limit losses
Gold price trades with negative bias for the second straight day, though a combination of factors continues to act as a tailwind ahead of the crucial US NFP report later this Friday. Rising trade tensions continue to weigh on investors' sentiment.
Crypto AI Tokens: Why FET, NEAR and RNDR could outperform BTC after White House Summit
The White House Crypto Summit is scheduled to hold on Friday. Rather than double-down on BTC, sector-wide price trends show that investors are leaning towards Crypto AI altcoins.
Make Europe great again? Germany’s fiscal shift is redefining the European investment playbook
For years, Europe has been synonymous with slow growth, fiscal austerity, and an overreliance on monetary policy to keep its economic engine running. But a major shift is now underway. Germany, long the poster child of fiscal discipline, is cracking open the purse strings, and the ripple effects could be huge.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.