WTI oil prices today are facing selling pressure on the first day of the week after mostly positive movement last Friday. However, the commodity has rebounded from early lows in the Asian session and is currently trading around $84.20, down approximately 0.80% for the day.

More broadly, oil prices remain stuck in a trading range that has persisted for several days, as market participants struggle to assess the real impact of the Israel-Hamas conflict and whether it could disrupt oil supplies from the region.

This uncertainty has led to a lack of aggressive bets on the commodity, keeping its price movement within a certain range. Meanwhile, oil price gains seem limited due to concerns about the economic impact of rapid interest rate hikes, which could dampen fuel demand.

In addition, traders are waiting for official business activity data from China’s Purchasing Managers’ Index (PMI) for further clues. This week, investors will also be watching key risk events, including the Bank of Japan (BoJ) meeting on Tuesday, the FOMC decision on Wednesday, and the Bank of England (BoE) on Thursday. Preliminary Eurozone GDP data and the US jobs report (NFP) are also expected to influence crude oil prices significantly.

At the same time, the slightly stronger US Dollar (USD), supported by rising US Treasury yields and hawkish Federal Reserve (Fed) expectations, is seen as a major factor weighing on commodity prices traded in USD.

Technically, the current limited price movement within the range reflects short-term uncertainty among traders. Therefore, it’s best to wait for further developments before making aggressive bets on crude oil prices.

Also Read :

Production Cuts, WTI Oil Prices Soar

WTI Crude Oil Turns Bearish Again & Experiences a Loss of 14,000 Barrels


Warning!

This analysis is based on fundamental and technical views from reliable sources, and should not be considered as advice or solicitation. Remember, this content is intended to enrich readers' information. Always conduct independent research before using this information as a reference in your trading decisions.

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