WTI prices are higher as investors benefited sharp sales in short positions on Monday.
President Trump warned that if interest rates don't fall soon, the US economy could slow down.
Concern regarding the demand for crude oil is fueled by the growing ambiguity around US monetary policy.
Tuesday's European hours saw the price of West Texas Intermediate (WTI) oil recoup its recent losses from the previous day, closing at about $63.30 per barrel. Crude oil prices increased after investors covered short bets by taking advantage of Monday's steep sell-off.
According to Reuters, Hiroyuki Kikukawa, Chief Strategist at Nissan Securities Investment, remarked, “Some short-covering developed after Monday’s steep sell-off.” Hiroyuki added that the WTI price is probably going to remain in the $55–$65 area for the time being due to persistent worries about a possible recession brought on by continued trade disputes.
US President Donald Trump reaffirmed his criticism of Jerome Powell, the chair of the Federal Reserve, on Monday, threatening to halt the US economy unless interest rates are lowered right away. His comments increased skepticism about US monetary policy and fueled worries about the Fed's independence.
Analysts pointed out that the growing uncertainty surrounding US monetary policy is anticipated to have an impact on financial markets and the overall economy, escalating concerns about a decline in the demand for crude oil. Investors now perceive a roughly 50% likelihood of a US recession within the next 12 months, primarily due to the effects of current tariff policy, according to a Reuters poll released on April 17.
Meanwhile, changes in the US-Iran relationship may put more strain on oil prices. Both countries decided to start creating a framework for a possible nuclear agreement over the weekend. Given that Iran is still a major producer of oil, any breakthrough might allay worries about supplies.
President Trump warned that if interest rates don't fall soon, the US economy could slow down.
Concern regarding the demand for crude oil is fueled by the growing ambiguity around US monetary policy.
Tuesday's European hours saw the price of West Texas Intermediate (WTI) oil recoup its recent losses from the previous day, closing at about $63.30 per barrel. Crude oil prices increased after investors covered short bets by taking advantage of Monday's steep sell-off.
According to Reuters, Hiroyuki Kikukawa, Chief Strategist at Nissan Securities Investment, remarked, “Some short-covering developed after Monday’s steep sell-off.” Hiroyuki added that the WTI price is probably going to remain in the $55–$65 area for the time being due to persistent worries about a possible recession brought on by continued trade disputes.
US President Donald Trump reaffirmed his criticism of Jerome Powell, the chair of the Federal Reserve, on Monday, threatening to halt the US economy unless interest rates are lowered right away. His comments increased skepticism about US monetary policy and fueled worries about the Fed's independence.
Analysts pointed out that the growing uncertainty surrounding US monetary policy is anticipated to have an impact on financial markets and the overall economy, escalating concerns about a decline in the demand for crude oil. Investors now perceive a roughly 50% likelihood of a US recession within the next 12 months, primarily due to the effects of current tariff policy, according to a Reuters poll released on April 17.
Meanwhile, changes in the US-Iran relationship may put more strain on oil prices. Both countries decided to start creating a framework for a possible nuclear agreement over the weekend. Given that Iran is still a major producer of oil, any breakthrough might allay worries about supplies.
