Why are WTI crude oil prices struggling despite a previous strong move up?

WTI crude oil prices are struggling due to a confluence of factors including rising U.S. shale production, a stronger dollar, and concerns over global economic growth. Additionally, geopolitical tensions and fluctuating demand forecasts contribute to market volatility, tempering previous gains.

US Crude Oil Prices Hold Steady Amid Lease Market Fluctuations

Geopolitical Tensions and Supply Concerns

Against the backdrop of Israel’s retaliation against Iran-backed Lebanese group Hezbollah, the killing of Hamas leader Ismail Haniyeh in Tehran keeps the risk of a broader Middle East conflict in play. This, in turn, raises worries about supply disruptions from the key oil-producing region, which, along with data showing US inventories shrank more than expected for a fifth week in a row, acts as a tailwind for the black gold.

The Energy Information Administration (EIA), in its report on Wednesday, stated that crude oil inventories in the US went down by 3.4 million barrels to 433.0 million barrels during the week ending July 26. The reading was more than consensus estimates for a decline of 1.6 million barrels and pointed to strong fuel demand.

Economic Factors and Market Dynamics

That said, China’s economic woes keep a lid on any meaningful upside for crude oil prices. Apart from this, the emergence of some US Dollar buying turns out to be another factor holding back traders from placing fresh bullish bets around the USD-denominated commodity. Meanwhile, a goodish USD recovery from a three-week low runs the risk of fizzling out rather quickly amid the Federal Reserve’s dovish outlook. This suggests that the path of least resistance for crude oil prices is to the upside.

Businesses Secure Long-Term Stability with New Lease Agreements

The EURUSD currency pair remains in a tight range above the 1.0900 support level on Monday as it struggles for direction. Investors seek fresh cues at the start of a busy data week, which may indicate how much the Federal Reserve will cut interest rates in September.

India Sees 22.5% Growth in Tax Collections, Boosted by Lease Revenues

India's net direct tax collections saw a significant boost, growing by 22.5% as of August 11, compared to 19.54% the previous month. This surge was driven by a 30% rise in Personal Income Tax revenues and a 111% increase in Securities Transaction Tax receipts, despite modest corporate tax growth.

New Tech Firm Secures Long-Term Lease in Downtown Business District

A major tech firm has signed a long-term lease for a new office space in downtown San Francisco, signaling confidence in the city's commercial real estate market. The move is expected to bring hundreds of jobs to the area and boost local businesses.

Lawmakers Consider Alternatives as Lease Deduction Nears Expiration

Lawmakers are evaluating alternatives to the expiring 20% deduction for qualified business income introduced by the Tax Cuts and Jobs Act. One option is corporate integration, which could address existing distortions. Businesses with a lease may also be impacted by these potential changes.

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US Crude Oil Prices Hold Steady Amid Lease Market Fluctuations

Geopolitical Tensions and Supply Concerns

Economic Factors and Market Dynamics