WTI Lacks Firm Intraday Direction,Oscillates in a Range Below $68.00
West Texas Intermediate (WTI) US Crude Oil prices struggle to gain any meaningful traction on Tuesday and oscillate in a range below the $68.00/barrel mark during the Asian session.
A ceasefire deal between Israel and the Lebanon-based Hezbollah militant group eased concerns about supply disruptions from the Middle East. This, in turn, is seen as a key factor that keeps the black liquid depressed near a two-week low touched on Monday. Furthermore, the recent US Dollar (USD) strength is seen undermining demand for USD-denominated commodities, including Crude Oil prices.
That said, the worsening Russia-Ukraine conflict keeps geopolitical risks premium in play and acts as a tailwind for the black liquid. Apart from this, expectations that the Organization of Petroleum Exporting Countries and allies (OPEC+) would further delay plans to increase production amid persistent concerns over slowing demand growth contribute to limiting the downside for Crude Oil prices.
Traders also seem reluctant to place aggressive bets and opt to wait for important US macro releases scheduled at the beginning of a new month, including the US monthly employment details, or the Nonfarm Payrolls (NFP) report. The crucial data would influence expectations about the Federal Reserve's (Fed) rate-cut path, which, in turn, will drive the USD demand and provide a fresh impetus to Crude Oil prices.(Cay)
Source: Fxstreet
