FX.co ★ CL/Crude Oil

WTI Oil Prices Remain in Negative Territory for the Third Day Amid Rate Cut Speculation and the Fed's Hawkish Stance: The downward trajectory of WTI crude oil prices persisted into Tuesday, with prices hovering near $82.20 per barrel in negative territory for the third straight day. This decline is fueled by mounting conjecture surrounding potential delays in rate cuts, coupled with a more hawkish tone from the Federal Reserve, which has exerted downward pressure on the commodity known as black gold. Market participants are closely monitoring the Federal Reserve's stance on interest rates, with some anticipating a shift towards rate hikes that could dampen demand for oil and other commodities. The recent hawkish rhetoric from the Fed has only served to heighten these apprehensions, contributing to the ongoing downward trend in oil prices. In addition to monetary policy concerns, geopolitical tensions have played a significant role in shaping market sentiment. Various conflicts, particularly in the volatile Middle East region, have introduced an element of uncertainty and risk premium into the oil market. Nevertheless, there remains a glimmer of hope that successful negotiations for a ceasefire could help alleviate some of these geopolitical pressures and provide stability to WTI prices. Despite the prevailing challenges, market analysts maintain a cautious sense of optimism regarding the future trajectory of oil prices. Factors such as the pace of global demand recovery, shifts in supply dynamics, and geopolitical developments will continue to influence market sentiment in the days ahead. Oil Prices Face Resistance at 84.44i Levels, OsM Signals Bearish Momentum: After forming a double bottom at $80.85, oil prices experienced a surge over the past few days. However, upon reaching the zero Fibonacci level, the upward momentum faltered, leading to a reversal. Despite encountering support near the 50 and 61.8% Fibonacci levels, the absence of a clear bullish pattern remains evident.

The OsM indicator now reflects bearish momentum, suggesting a potential downward trajectory for oil prices. This indicates a likelihood of the price testing the double bottom support at $80.85. However, initiating selling positions requires confirmation, necessitating the observation of a complete hourly candle above the 50.00% Fibonacci level. As oil prices navigate these technical levels and momentum indicators, market participants remain cautious, awaiting clearer signals to guide their trading decisions. The presence of support near certain Fibonacci levels provides some stability, but the absence of a bullish pattern underscores the prevailing uncertainty in the market. Vigilance and careful analysis will be crucial in navigating the evolving dynamics of oil prices in the near term.