The post WTI sticks to modest intraday gains amid Middle East tensions, remains below $77.00 mark appeared on BitcoinEthereumNews.com.

WTI attracts some buyers amid geopolitical risks stemming from conflicts in the Middle East. September Fed rate cut expectations undermine the USD and further benefit the commodity. Worries about slugging demand in China keep a lid on further gains ahead of the Fed meeting. West Texas Intermediate (WTI) US crude Oil prices kick off the new week on a positive note and reverse a part of Friday’s heavy losses back closer to the lowest level since June 10, around the $75.75 region touched the previous day. The commodity, however, struggles to build on the momentum beyond the $77.00/barrel mark, warranting some caution before positioning for any further appreciating move.  A rocket strike in the Israeli-occupied Golan Heights on Saturday, which killed 12 teenagers and children, raised fears about an all-out war between Israeli forces and Hezbollah in Lebanon. Furthermore, concerns that a wider conflict in the Middle East will disrupt global crude supply in the key producing region turn out to be a key factor driving flows towards the black liquid. Apart from this, a modest US Dollar (USD) weakness, led by bets for an imminent start of the Federal Reserve’s (Fed) policy easing cycle, lends additional support to Crude Oil prices.  Investors now seem convinced that the US central bank will start lowering borrowing costs in September and cut interest rates two more times by the end of this year. The bets were lifted by the release of the US Personal Consumption Expenditures (PCE) Price Index on Friday, which showed that inflation rose modestly in June and added to signs of easing price pressures. Additional details of the report revealed that consumer spending slowed a bit last month, suggesting that growth in the world’s largest economy is waning amid a cooling labor market. This comes on top of sluggish growth…

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Filed under: News - @ July 29, 2024 3:28 am