I would encourage traders to look out for the Fed decision later this month, as another higher-than-expected rate hike can push crude even lower
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Commodities arouse our attention more than usual as crude oil trades below $80, and we wonder what could affect the prices in the near future. Let's hear from David Kindley from Orbex.
David Kindley (Orbex): WTI prices are currently in a downward spiral amid decreasing demand from major economies and overall global economic growth pessimism. Meanwhile, Fed Chair Powell’s speech on Tuesday came in hawkish, pushing the dollar-denominated crude even lower.
In the short term, I would expect crude prices to continue to decline towards the $70 level
In the short term, I would expect crude prices to continue to decline towards the $70 level. However, in the long term, crude and brent prices are set to rise throughout 2023 as Russia’s output falters and as demand from China is expected to eventually rise. I would encourage traders to look out for the Fed Interest Rate Decision later this month (March 22), as another higher-than-expected rate hike can push crude even lower.
