West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices, took another rapid fall on Tuesday by more than -5% after U.S. Federal Reserve Chair Jerome Powell signalled that the United States central bank would consider speeding up its withdrawal of bond purchases as inflation risks increase.
In testimony before the Senate Banking Committee, Powell indicated that he no longer considers high inflation as “transitory” and that the Federal Open Market Committee (FOMC) members would discuss the possibility of concluding tapering quicker at their next meeting Dec. 14-15.
The oil market is also continuing to weigh the impact of the spread of the newly-discovered Omicron COVID-19 variant and what OPEC+ may decide to do in response when the producer group meets later this week.
The U.S. government will release its weekly inventory data on Wednesday.
With a neutral assessment in place (in the short term), the technical assessment remains buckled and negative, and a potential (measured) target is viewed to US$61.80-95.