Crude Oil softens as traders remain split over big Fed rate cut
The post Crude Oil softens as traders remain split over big Fed rate cut appeared on BitcoinEthereumNews.com.
Crude Oil falls slightly with all eyes on the Fed meeting on Wednesday. More bearish news for Oil emerged over the weekend, with China’s economic data deteriorating even further. The US Dollar Index is under pressure, trading at the lower boundary of September’s bandwidth. Crude Oil edges down slightly on Monday after more weak Chinese economic data released over the weekend weighs on prices. Price action this week will largely depend on the US Federal Reserve (Fed), which is set to cut interest rates with markets deeply divided over whether rates will be lowered by only 25 basis points (bps) or by 50 bps. Traders would stem a bigger rate cut as supportive of growth and demand, supporting Crude Oil prices. The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against a basket of currencies, is facing downward pressure as well. With a bigger-than-expected rate cut on the cards, the Greenback loses its power over other currencies as rate differentials with other central banks would get tighter. All eyes will be of Fed Chairman Jerome Powell on Wednesday. At the time of writing, Crude Oil (WTI) trades at $68.16 and Brent Crude at $71.57. Oil news and market movers: Net bearish against Fed rate cuts The Commodity Futures Trading Commission (CFTC) has revealed in its weekly report that traders are net bearish Brent futures for the first time since September 2011. Short positions outnumbered long bets by 12,680 lots in the week ended Sept. 10, Bloomberg reports. Libya is still in an impasse over who should control its central bank. UN-led talks broke down again with the impasse still in place. This in its turn causes the country’s crude exports to continue to slump, Reuters reports. Meanwhile, Houthi rebels claim to have fired hypersonic missiles…
Filed under: News - @ September 16, 2024 11:23 am