WTI Crude Oil Prices Gain Following Fed's Interest Rate Decision

On Friday, WTI is trading at approximately $82.60. WTI prices have remained in positive territory for the second consecutive day due to increased market risk appetite and a weaker US Dollar (USD).

During its November meeting, the Federal Open Market Committee (FOMC) decided to keep interest rates unchanged at 5.25%-5.50%, as widely expected. The market anticipates that the FOMC has reached the peak of its interest rate hiking cycle, which caused WTI prices to rise and put pressure on the USD.

Geopolitical tensions between Israel and Hamas have also contributed to the rise in WTI prices. However, there is concern that the conflict could spread across the region and potentially disrupt oil supplies.

China's economic indicators have mixed results. While the Services PMI for October exceeded market expectations, the Caixin Manufacturing PMI fell below estimates. Additionally, both the NBS Manufacturing PMI and Non-Manufacturing PMI were worse than expected. Given that China is a major consumer of oil, a negative economic outlook for the country could impact oil prices.

Later on Friday, oil traders will closely monitor the US employment data, specifically the Nonfarm Payrolls (NFP) report, which is expected to show an increase of 180K jobs in October. The unemployment rate is anticipated to remain unchanged at 3.8%. These data points will have a significant impact on the USD-denominated WTI price, and oil traders will use them to identify potential trading opportunities.

WTI continues its volatile price action where a clear direction is hard to forecast with the actual geopolitical tensions. 78 seems to be the next support level while 86 is the next resistance.

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