WTI crude slipped just under $60 on Monday, trading with a slightly negative vibe. Still, it’s hanging near the two-week high it hit on Friday, so sellers aren’t really taking over. The price has been climbing for three weeks straight, though you can tell buyers are getting a bit careful at these levels.
Russian Supply Risks Keep Oil Supported
Reuters reports the G7 and EU are thinking about ditching the Russian oil price cap and going for a full ban on maritime services instead. If that happens, Russian exports could take a serious hit, tightening global supply. On top of that, Russia and Ukraine aren’t making much progress toward peace, which just adds more uncertainty. Both factors are keeping a floor under crude prices, stopping any big drops for now.
Fed Rate Cut Hopes Add Another Boost
Traders expect the Federal Reserve to cut interest rates at Wednesday’s meeting, which has kept the US Dollar sluggish near recent lows. When the dollar weakens, dollar-priced commodities like oil usually get a lift, helping oil avoid sharper losses. There’s still room for prices to climb, but some limits remain. According to OPEC’s most recent report, oil supply may surpass demand by 2026, and US crude inventories are increasing once more, both of which could prevent significant rallies.
According to the charts, buyers are still in control because WTI recently surpassed its 50-day Simple Moving Average. Therefore, a short-term decline in prices appears to be more of a buying opportunity than the beginning of a longer decline.
