Crude Fluctuates on COP28 Uncertainty
London: 13 December 2023 (TraderMade): Oil prices attempt to recover after dipping below $70 earlier this week. WTI crude currently (At about 02:32 PM GMT) trades at $69.057, while Brent crude is $73.609 per barrel.
This recovery comes amidst a backdrop of uncertainty, with lingering inflation concerns and the recent COP28 agreement casting a long shadow over the future of fossil fuels.
Bears gain momentum on sticky inflation data
Sticky inflation data from Tuesday's CPI fueled bearishness for oil, supporting the Fed's hawkish stance and potentially leading to higher interest rates and a stronger USD, which dampens oil demand.
COP28 agreement adds to bearish pressure
The United Nations Climate Change Conference (COP28) concluded with a historic agreement, marking the start of the end of fossil fuels. This agreement paves the way for a swift and equitable transition to clean energy, fueled by significant emission reductions and increased financial support.
COP28's commitment to ending fossil fuels makes the already challenging oil outlook more complex.
Market braces for Fed decision and producer price index
Fed meeting and PPI data eyed for clues on oil's future: interest rate decision and updated economic projections key.
Market volatility expected to persist
Despite a recent rally, oil volatility persists as global factors, geopolitical tensions, and the renewable energy shift fuel uncertainty. Investors must stay vigilant, monitoring key developments to navigate this volatile market.
