- WTI price continues to lose ground for the second successive session on Monday.
- Crude oil prices receive downward pressure due to uncertainties over Crude oil demand globally.
- Higher interest rates globally dampen economic activities, which in turn undermines the consumption of oil.
West Texas Intermediate (WTI) oil prices extend their decline for the second consecutive session, hovering near $76.00 per barrel during the Asian trading session on Monday. The downward pressure on Crude oil prices can be attributed to uncertainties surrounding demand, likely influenced by heightened global risk sentiment. This sentiment could prompt central banks to adopt a patient stance regarding the trajectory of interest rates.
The global trend of higher interest rates is dampening economic activities, thereby reducing the consumption of Crude oil and resulting in lower demand. The recent Federal Open Market Committee (FOMC) Minutes highlighted concerns about interest rate cuts, signaling a preference for maintaining higher borrowing costs to combat persistent inflationary pressures. This stance has contributed to the moderation in oil prices.
Furthermore, hawkish remarks from officials at the Federal Reserve (Fed) have signaled a continuation of higher Fed rates. John C. Williams, President of the New York Federal Reserve, suggested in an interview that rate cuts might be possible later in the year, but emphasized that they would only be implemented if deemed appropriate. Similarly, Federal Reserve Governor Christopher J. Waller has proposed delaying any rate cuts for a few months to assess whether January's high inflation report was an anomaly.
The escalation of geopolitical tensions in the Middle East has sparked concerns regarding possible disruptions to the oil supply. However, despite these concerns, significant supply constraints have not yet materialized. In addition, White House national security adviser Jake Sullivan announced on Sunday that negotiators from the United States, Egypt, Qatar, and Israel had reached a preliminary agreement on a hostage deal during discussions in Paris.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD keeps the range bound trade near 1.1350
After bottoming near the 1.1300 level, EUR/USD has regained upward momentum, pushing toward the 1.1350 zone following the US Dollar’s vacillating price action. Meanwhile, market participants remain closely tuned to developments in the US-China trade war.
GBP/USD still well bid, still focused on 1.3200
The Greenback's current flattish stance lends extra support to GBP/USD, pushing the pair back to around the 1.3200 level as it reaches multi-day highs amid improved risk sentiment on Monday.
Gold trades with marked losses near $3,200
Gold seems to have met some daily contention around the $3,200 zone on Monday, coming under renewed downside pressure after hitting record highs near $3,250 earlier in the day, always amid alleviated trade concerns. Declining US yields, in the meantime, should keep the downside contained somehow.
Six Fundamentals for the Week: Tariffs, US Retail Sales and ECB stand out Premium
"Nobody is off the hook" – these words by US President Donald Trump keep markets focused on tariff policy. However, some hard data and the European Central Bank (ECB) decision will also keep things busy ahead of Good Friday.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.