WTI remains below $68.50 amid firmer US Dollar, OPEC meeting in focus
WTI drops to near $68.25 on a stronger USD in Monday’s early European session.
Improved Chinese economic data and geopolitical risks might cap the WTI’s downside.
Oil traders brace for the OPEC meeting on Thursday for fresh impetus.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $68.25 on Monday. The WTI price edges lower as the stronger US Dollar (USD) broadly drags the USD-denominated commodity price lower.
US President-elect Donald Trump's statement that he will impose tariffs has led to fears that it could slow the pace of the Federal Reserve's (Fed) easing cycle, boosting the USD. The rise of the USD against other currencies generally lowers oil demand by making oil more expensive for those who use foreign currencies. According to the CME FedWatch Tool, the money markets have priced in a nearly 67.1% chance that the Fed will cut rates by a quarter point in December, while there is a 32.9% probability that the policy rate will remain unchanged.
The encouraging Chinese economic data released on Monday could provide some support to the black gold, as China is a major consumer of crude oil in the global market. China’s Caixin Manufacturing PMI jumped to 51.5 in November versus 50.3 in October, beating the estimation of 50.5. This growth was driven by the increase in foreign orders since February 2023 and exports.
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