WTI fell back into familiar lows on Tuesday before a late-day jump. API barrel counts fell back further than expected. Broad-market sentiment is struggling under the weight of higher-for-longer Fed rates. West Texas Intermediate US Crude Oil fell to $77.30 on Tuesday as market sentiment regarding Federal Reserve interest rate cut expectations begins to crumble, but a late-day Crude Oil supply update from the American Petroleum Institute helped to bolster barrel bids.
Further weighing on Crude Oil bids is US inflation, which continues to print higher than expected and keeping the Fed’s hands tied when it comes to interest rate cuts, hobbling broad-market risk appetite as investors look for signs the Fed could cut rates sooner rather than later. US Consumer Price Index inflation figures are due on Wednesday and threaten to destabilize intraday market volatility if inflation continues to run hotter than market forecasts can adapt to.