WTI price extends the rally to near $76.15 in Monday’s Asian session, gaining 0.45% on the day.
Fed’s dovish stance and rising geopolitical tensions in the Middle East further boost the WTI price.
The weaker demand outlook in China could weigh on the black gold.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $76.15 on Monday. WTI price edges higher on the back of firmer expectations that the Federal Reserve (Fed) will cut interest rates in its upcoming September meeting.
WTI gains ground after the dovish comments by Fed Chair Jerome Powell indicated the US central bank was preparing to cut interest rates. Fed’s Powell gave a clear signal on Friday at the Jackson Hole symposium that it’s time to start cutting the target range for the federal funds rate at the next meeting on September 17-18. Lower interest rates generally support the WTI price as it reduces the cost of borrowing, which can boost economic activity and oil demand.
The fears that wider conflict in the Middle East could disrupt regional oil supplies have lifted the WTI price in the previous sessions. Reuters reported that Hezbollah launched hundreds of rockets and drones at Israel early on Sunday, as Israel's military said it carried out a wave of pre-emptive strikes across southern Lebanon to thwart a large-scale rocket and drone attack by Hezbollah.
