WTI rises toward $76.00 as Middle East tensions heighten the Oil supply concerns

• WTI rebounds from an eight-week low of $74.24 recorded on Tuesday.
• Oil prices gain ground as Middle East tensions pose risks to Oil supply.
• The prices of crude Oil may receive support from the increasing odds of a Fed rate cut in September.

West Texas Intermediate (WTI) crude Oil price trades around $75.70 per barrel by the press time. WTI rebounded from an eight-week low of $74.24 recorded on Tuesday, attributed to rising geopolitical tensions in the Middle East that pose risks to Oil supply.

The Israeli government claims it killed Hezbollah's most senior commander in an airstrike on Beirut on Tuesday, in retaliation for Saturday's cross-border rocket attack on Israel. This escalation occurred despite diplomatic efforts by US and UN officials to prevent a major conflict that could inflame the wider Middle East, according to Reuters.

The Federal Reserve (Fed) is anticipated to maintain current interest rates on Wednesday. However, there is increasing speculation about a potential rate cut in September. This expectation could bolster economic activity in the United States, the world's largest consumer of crude Oil, thereby supporting the demand for the liquid Gold.

However, a sluggish economic outlook in China, the world's largest crude importer, is limiting the upside of Oil prices. China's manufacturing activity in July contracted for the third consecutive month, according to an official factory survey released on Wednesday.

The Organization of the Petroleum Exporting Countries and allies led by Russia (OPEC+) will hold an online Joint Ministerial Monitoring Committee (JMMC) meeting on Thursday. According to Reuters, the group is unlikely to make any changes to its current agreement to cut production and plans to begin unwinding some of these cuts starting in October.

The US Energy Information Administration (EIA) will report the Crude Oil Stocks Change later in the North American session. The market anticipates a decline of 1.60 million barrels for the week ending July 26, following the previous week’s decline of 3.741 million barrels.