WTI corrects from two-month high near $84.00 amid caution due to Storm Beryl

• WTI price corrects from $84.00 due to uncertainty over the impact of Tropical Storm Beryl.
• Various US ports were closed on Sunday as a precaution against Storm Beryl.
• The prospects of Fed rate cuts in September have increased significantly.

West Texas Intermediate (WTI), futures in NYMEX, extend its correction to near $82.20 in Monday’s Asian session after posting a fresh two-month high near $84.00 on Thursday. The Oil price comes under pressure as investors worry about Storm Berly, which could disrupt United States (US) energy supplies.

Should the Tropical Storm Bery turn into a Category two hurricane, a temporary halt could be seen on crude and liquefied natural gas exports, motor fuel deliveries and oil shipments to refineries.

For precautionary purposes, ports of, Houston, Corpus Christi, Galveston, Texas City and Freeport remained close on Sunday.

Meanwhile, Oil demand worries have eased significantly as a rate cut move by the Federal Reserve (Fed) in its September meeting appears to be a done deal. The CME FedWatch tool shows that the probability for Fed reducing interest rates from their current levels in September has increased to 75.8% from 64%, recorded a week ago.

The expectations for the Fed to begin reducing interest rates from September improved after the US Nonfarm Payrolls (NFP) report of June showed that the strength in the US labor market is easing. The report showed that wage growth softened expectedly, the Unemployment Rate increased and payrolls were higher than expectations but lower from downwardly revised May figures.