WTI Oil Prices React to FOMC Decision and Weaker Chinese Data

WTI has broken a three-day losing streak following the Federal Open Market Committee (FOMC) decision to maintain interest rates unchanged on Wednesday. Nevertheless, concerns arise as weaker Chinese data may adversely affect the outlook for oil demand.

As expected, the FOMC opted to leave interest rates untouched during its Wednesday meeting. During the press conference, Fed Chair Jerome Powell emphasized the committee's reliance on data and its commitment to a cautious approach. While the FOMC has left the door open for potential rate hikes, the market sentiment suggests that the rate-hiking cycle has concluded, leading to a decline in the US Dollar value against various currencies.

Furthermore, the rising tensions in the Middle East could exacerbate the existing disruptions in the energy market caused by Russia's conflict in Ukraine.

On a different note, Chinese manufacturing PMI figures for October have dipped below the critical 50-point mark due to reduced production and weaker demand. This unfavorable data raises doubts about the recent optimism regarding the recovery of the world's second-largest economy. It's important to highlight that China holds a prominent position as the world's largest oil consumer, and any negative economic outlook could exert downward pressure on oil prices.

Looking ahead, oil traders will closely watch the US weekly Initial Jobless Claims on Thursday. On Friday, attention will shift to the US Nonfarm Payrolls report, which is expected to show an increase of 180,000 jobs in October compared to 336,000 in September. These events are likely to have a significant impact on the USD-denominated WTI price. Oil traders will use the data as a basis for identifying trading opportunities within the WTI market.

WTI is trading at its lowest level nearing 82. The trend is bearish, and the next target is 78.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
94	90	84	80	78	74