Market Analysis

West Texas Intermediate (WTI) crude oil prices started the week on a downtrend, dipping below $83.00 per barrel during the Asian trading session. Concerns eased regarding a potential escalation in the Israel-Iran conflict, while worries lingered about the impact of higher US interest rates on fuel demand, particularly following weaker-than-expected Q1 GDP growth figures released last week.

The US Personal Consumption Expenditures (PCE) Price Index, published on Friday, reinforced expectations of delayed interest rate cuts by the Federal Reserve (Fed), contributing to a bullish tone around the US Dollar (USD) and putting pressure on crude oil prices.

Over the weekend, Ukraine launched attacks on additional Russian oil refineries, adding to supply risks amid earlier Russian export and production cuts. These factors, coupled with ongoing tensions in the Middle East, should help support crude oil prices from significant declines.

Investors are now awaiting Tuesday's release of official PMI data from China, the world's leading oil importer, for further market direction. Attention will then turn to the outcome of the two-day FOMC policy meeting on Wednesday and key US economic indicators, including the Non-Farm Payrolls (NFP) report at the start of the new month.

However, given the mixed fundamental landscape, caution is advised in making aggressive trading decisions until relevant US economic data becomes available on Monday.

Paraphrasing text from "FX Street" all rights reserved by the original author.