Crude oil prices are expected to remain highly volatile this week, sensitive to incremental updates regarding the Middle East situation.
Oil prices maintained a bullish tone throughout last week and faced additional buying pressure early this week amid escalating geopolitical tensions in the Middle East. On Tuesday, Brent crude approached $111 per barrel, while West Texas Intermediate (WTI) traded steadily above $115. However, both benchmarks appear to lack momentum as investors grew cautious about placing aggressive bids ahead of President Donald Trump’s deadline.
The bullish momentum surged early Tuesday as President Trump’s deadline for threatened attacks on Tehran’s infrastructure approached, following Iran’s rejection of a proposed 45-day ceasefire. Iran insists on a permanent end to the conflict with guarantees against future strikes and counters with its own 10-point demands. Trump called Iran’s response “not good enough” and reiterated threats to strike infrastructure if the Strait of Hormuz is not reopened by his deadline.
Meanwhile, commodity markets face uncertainty over the pace of future Federal Reserve rate cuts, as rising oil prices fuel near-term inflation concerns among global investors. Attention now turns to the release of crucial US inflation data this week, with traders hoping these figures will provide clues about the Federal Reserve’s monetary policy path.
Crude oil prices are expected to remain highly volatile this week, sensitive to incremental updates regarding the Middle East situation. WTI crude is trading near its March highs, with technical indicators suggesting the uptrend remains intact and may continue higher if prices break above recent peaks. However, failure to break out after multiple attempts could signal weakening upside momentum. Looking ahead, updates on Trump’s Iran policy, geopolitical developments, US CPI data, and Fed policymakers’ comments will be key factors influencing short-term oil price movements.
Warning! This material is not intended as investment advice. Past performance data does not guarantee future returns. Investing in foreign currencies may affect your returns due to their fluctuations. Any transaction with securities may result in both profits and losses. The assumptions and expectations set forth in this material are only estimates that may not be accurate and may change depending on current economic conditions. These statements do not guarantee future returns.
U.S. macroeconomic data released on September 3 showed stronger activity in the services sector alongside persistently weak hiring. Companies are laying off few workers, new orders are rising sharply, yet employment in services continues to contract. At the same time, firms are reporting the strongest input price pressures in nearly four years. For monetary policy, the key issue is therefore the divergence between demand, employment and prices.
Les mer →Global equities, cryptocurrencies and precious metals extended their gains on Thursday as traders reduced bets on a Federal Reserve rate hike this month. Attention now turns to the US employment report for August.
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