03 Dec 2024

WTI is currently stabilizing after experiencing recent losses, reaching a two-week low due to mixed signals in the market.

Concerns over supply disruptions have diminished, while a stronger U.S. dollar presents challenges.

Traders appear hesitant as they await the OPEC+ meeting scheduled for Thursday, along with upcoming U.S. economic data.

West Texas Intermediate (WTI) US Crude Oil prices are experiencing difficulty in establishing significant momentum on Tuesday, fluctuating within a range below the $68.00 per barrel threshold during the Asian trading session.

The announcement of a ceasefire agreement between Israel and the Hezbollah militant group based in Lebanon has alleviated fears regarding potential supply disruptions from the Middle East. This development is perceived as a significant factor contributing to the continued pressure on oil prices, which remain near a two-week low reached on Monday. Additionally, the recent strength of the US Dollar (USD) is seen as a factor that diminishes demand for commodities priced in USD, including Crude Oil.

Nevertheless, the escalating conflict between Russia and Ukraine maintains a geopolitical risk premium, providing some support for oil prices. Furthermore, there are expectations that the Organization of Petroleum Exporting Countries and its allies (OPEC+) may postpone plans to increase production due to ongoing concerns about slowing demand growth, which helps to limit the decline in Crude Oil prices.

Traders appear hesitant to make bold moves, opting instead to await significant US economic data set to be released at the start of the new month, including the monthly employment figures and the Nonfarm Payrolls (NFP) report. This critical information is likely to shape expectations regarding the Federal Reserve's (Fed) approach to interest rate cuts, which will, in turn, influence USD demand and potentially provide new momentum for Crude Oil prices.