WTI Crude Oil’s Bullish Rally Continues Ahead of Fed’s Meeting

Crude oil’s overnight rally continues into Tuesday in anticipation of Federal Reserve’s rate cut during its upcoming meeting scheduled to start later today. At the time of writing, WTI crude oil is trading at around $57.15 per barrel.

Fed’s rate cut sentiments have dominated global financial markets in the past few weeks on the back of weak economic data and low inflation rates that have plagued the US economy. If the Fed cuts rates, it would be for the first time in over a decade – the last rate cut took place during the financial crisis.

In addition to the Fed’s meeting, the US-China trade talks in Shanghai can also impact crude oil prices in the coming days. After several months, US and China’s trade teams are meeting face-to-face again, as they try to negotiate a trade deal.

Crude oil prices are also supported by the ongoing tensions in the Middle East surrounding Iran. Over the past few weeks, there have been several incidents in the Strait of Hormuz between Iranian Revolutionary Guards and oil tankers. As a result, Europe and the US are contemplating ways to improve maritime security in the region to ensure safety of their shipping interests.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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