WTI US CRUDE OIL SLIPS BELOW $90, TAKING A BREATHER AFTER HAWKISH FED
- WTI testing into $89.00 as markets take a step back after the Fed gave their latest rate call.
- Fed kept rates at 5.5%, but updated their rate outlook.
- US Oil easing back after supply constraint worries sent crude roaring.
West Texas Intermediary (WTI) has rallied recently, closing in the green for ten of the past twelve consecutive trading weeks and notching in over a 30% gain on the period.
Global crude oil supplies are facing down a continuous drawdown in reserve supplies after Saudi Arabia and Russia both announced that they would be extending their ongoing crude production cuts through the end of the year.
Crude soars on supply constraint fears, but hawkish Fed knocks action lower
Market analysts expect global crude supply chains to be facing a 2 million bpd deficit for the time being, until other crude production and shale pumping projects can get started in the US.
The Federal Reserve (Fed) held their benchmark interest rate at 5.5%, in-line with broader market estimates. However, the US central bank has updated their rate expectancy schedule looking forward, driving asset prices down and sending the US Dollar broadly higher.
The Fed now sees the interest rate for the year ending 2024 at 5.1%, half a percentage point higher than the previous 4.6%.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.