Crude Oil rally stumbles after Fed leans away from rate cuts, WTI falls back below $78

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Crude Oil rally stumbles after Fed leans away from rate cuts, WTI falls back below $78
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West Texas Intermediate (WTI) US Crude Oil rose through Wednesday’s early trading, hitting a fresh June high near $79.00 per barrel before slumping back below $78.00 after the Energy Information Administration (EIA) reported another buildup in US Crude Oil supplies coupled with another Federal Reserve (Fed) rate hold.

Crude Oil markets rose on Wednesday before trimming gains post- Fed . WTI peaked near $79.00 per barrel before falling back into the day’s range. Odds of two rate cuts in 2024 are evaporating, crimping risk appetite. West Texas Intermediate US Crude Oil rose through Wednesday’s early trading, hitting a fresh June high near $79.00 per barrel before slumping back below $78.

Market hopes for a September rate cut of at least 25 basis points peaked over 70% in the early US trading session before Fed caution swamped out sentiment. The Energy Information Administration reported another unexpected buildup in US Crude Oil Stocks Change for the week ended June 7, adding 3.73 million barrels to the previous week’s 1.233 million, washing out the forecast contraction of -1.55 million. WTI technical outlook WTI peaked just shy of $79.

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