WTI edges up around $85.00 on expected robust demand

WTI tends to finish Friday’s trading session with flat performance, as Wall Street ended the day with substantial gains amid hopes that Fed could be less hawkish, as mentioned by Fed officials debating to slow the pace of rate increases following November’s meeting. At the time of writing, WTI is trading at $85.05 per barrel, up by 0.19%.

Given that the Fed would diminish its hawkishness, the US dollar fell giving a chance for commodities to surge. US Treasury yields retraced their earlier gains, undermining the buck, which, as shown by its US Dollar Index, fell 0.88%, down at 111.865, after hitting a YTD high of 113.942.

Oil prices increased in mixed trading on expectations that China’s more robust demand could be an important factor. China might ease quarantine restrictions for visitors abroad from 10 to 7 days spurred a jump in oil prices.

OPEC and its allies decided to cut oil output amid the weakened global economic expectations, threatening to tip the largest economies into a recession. OPEC+ drew 2 million barrels daily, in a widely criticized decision by the White House, which reacted negatively to the decision.