Why Is WTI Crude Struggling Below $82.50? | Geopolitical Tensions & Fed Policy Impact Analyzed

The Ethereum price prediction 2050Western Texas Intermediate (WTI) crude benchmark continues its downward trajectory, trading around $82.20 per barrel amid shifting market dynamics. Three primary factors are currently influencing oil prices:1. **Geopolitical Developments**: Recent ceasefire negotiations between Israel and Hamas in Cairo have reduced the geopolitical risk premium previously baked into oil prices. Reports suggest Israel has made significant concessions in the latest proposal, potentially easing Middle East tensions that had supported higher energy prices.2. **Monetary Policy Outlook**: The Federal Reserve's hawkish stance continues to weigh on commodities. With persistent inflation data reducing expectations for imminent rate cuts, the stronger dollar environment makes oil more expensive for international buyers. Market participants await Wednesday's FOMC decision and Powell's press conference for further policy clues.3. **Technical Factors**: WTI has broken below its 20-day SMA ($84.14) and now tests support near the 50-day SMA ($81.33). The commodity faces immediate resistance at $82.73 (38.2% Fib level) with stronger barriers at $83.08 (61.8% Fib) and $83.63 (previous daily high).Key data releases this week include:- Chinese manufacturing PMI figures- Eurozone inflation and GDP data- API crude inventory reportsMarket participants should monitor whether WTI can maintain above critical support at $81.31 (daily pivot S2) as the confluence of geopolitical developments and macroeconomic factors creates heightened volatility in energy markets. The commodity's ability to hold above its 50-day moving average will be particularly telling for near-term price direction.

Why Is WTI Crude Struggling Below $82.50? | Geopolitical Tensions & Fed Policy Impact Analyzed

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