WTI Oil dips on Iraq output recovery, Fed rate cut hopes limit losses
The post WTI Oil dips on Iraq output recovery, Fed rate cut hopes limit losses appeared on BitcoinEthereumNews.com.
West Texas Intermediate (WTI) US Oil trades around $58.50 on Tuesday at the time of writing, down 0.40% on the day. The Crude Oil market is declining after the announcement of restored production at Iraq’s West Qurna 2 field, a development that increases short-term supply and pressures Oil prices. According to Reuters, Iraq has resumed output at the Lukoil-operated site after a pipeline leak temporarily reduced exports. The field, which produces over 460,000 barrels per day, nearly 0.5% of global Oil supply, also accounts for around 9% of Iraq’s total output, making its stabilization a significant factor for the global supply balance. This logistical improvement in Iraq is therefore exerting immediate downward pressure on prices. At the same time, geopolitical developments are limiting the extent of WTI’s pullback. US President Donald Trump recently expressed disappointment over Ukrainian President Volodymyr Zelenskiy’s response to a US proposal to end the conflict, reviving concerns about energy flows linked to Russia. Analysts believe restrictions on Russian energy exports are likely to stay in place, given the absence of an agreement to resolve the war, maintaining a risk premium on Crude Oil prices. Meanwhile, Asian import dynamics continue to reshape global flows. According to Commerzbank, China increased its purchases from Saudi Arabia and Iran in November, while imports from Russia declined amid softer demand and renewed US sanctions. These shifts underscore the persistent pressure on Russian supplies and may help establish a near-term floor under Crude Oil prices. Market participants now turn their attention to Wednesday’s monetary policy decision from the Federal Reserve (Fed). Investors strongly expect a 25-basis-point rate cut at the December meeting, a move that could improve the outlook for energy demand in 2025. Lower rates typically weaken the US Dollar (USD), which in turn tends to support WTI by making USD-denominated…
