Oil Prices Teeter on Rate Decision
Crude oil prices have remained volatile at high levels ahead of the Federal Reserve's interest rate decision, with WTI crude trading near $105 per barrel.
The market has adopted a cautious wait-and-see stance after a series of consecutive gains pushed prices above $105. Investors are digesting the impact of disruptions to Middle Eastern energy supplies while awaiting the Fed's decision.
Supply risks continue to provide support for WTI, with Saudi Arabia's East-West Pipeline remaining shut down and recent reports indicating that some crude deliveries to European customers have been canceled or postponed.
The market expects a sustained deep correction in crude prices is unlikely as long as supply chain risks persist. However, the rapid price surge has made short-term momentum capital more cautious, preventing further immediate expansion of price increases.