WTI Oil Prices Fluctuate Amid Fed Decision
Solid ECN - On Wednesday, West Texas Intermediate (WTI) crude oil futures decreased, settling near $77.5 a barrel. This decline partly reversed the gains from the prior session and mirrored the downturn in other volatile investments, as a cautious mood prevailed in the marketplace. Market participants were also cautiously anticipating the U.S. Federal Reserve's upcoming monetary policy announcement, with recent economic indicators diminishing expectations for reductions in interest rates.
Additionally, recent data revealed a continued contraction in Chinese manufacturing for the fourth consecutive month in January, pointing to persistent weak demand from the world's leading oil importer. Despite these factors, crude oil prices received some support due to concerns over escalating geopolitical tensions in the Middle East. This follows a recent lethal drone strike on American forces near the Jordan-Syria border. President Joe Biden of the United States acknowledged that the decision to respond to the incident was made. However, he withheld specifics to prevent a broader conflict in the region.