WTI trades with modest losses above $70.00, bearish bias remains

• WTI remains on the back foot near a two-week low and is pressured by a combination of factors.
• Easing fears of supply disruptions and demand concerns continue to weigh on the black liquid.
• Bets for smaller Fed rate cuts underpin the USD and support prospects for a further downfall.

West Texas Intermediate (WTI) US Crude Oil prices struggle to capitalize on the overnight modest bounce from the $69.25 area, or a two-week low and attract some sellers during the Asian session on Wednesday. The commodity currently trades around the $70.25 region, down 0.30% for the day, and seems vulnerable to decline further. 

Despite worries about an escalation of conflict in the Middle East, reports that Israel would not strike Iranian nuclear and oil sites eased fears of a supply disruption. This comes on top of a fall in China's oil imports for the fifth straight month raised concerns about weak demand in the world's top importer. Adding to this, OPEC lowered its forecast for global oil demand growth in 2024 and 2025 and in turn, validates the negative outlook for Crude Oil prices. 

Meanwhile, the US Dollar (USD) stands tall near its highest level since August 8 amid firming expectations for a less aggressive policy easing by the Federal Reserve (Fed) and bets for a regular 25 basis points (bps) interest rate cut in November. A stronger buck tends to undermine demand for USD-denominated commodities and supports prospects for an extension of the recent fall from the vicinity of the $78.00 mark, or the monthly peak touched last week.