WTI rises to near $63.50 due to covering short positions

• WTI price edges higher as investors capitalized on Monday's sharp sell-off to cover short positions.
• President Trump warned that the US economy could slow unless interest rates are cut immediately.
• Growing uncertainty surrounding US monetary policy fuels concerns over crude Oil demand.

West Texas Intermediate (WTI) Oil price retraces its recent losses from the previous session, trading around $63.30 per barrel during the European hours on Tuesday. The uptick in crude Oil prices came as investors took advantage of Monday's sharp sell-off to cover short positions.

According to Reuters, Hiroyuki Kikukawa, Chief Strategist at Nissan Securities Investment, commented, "Some short-covering emerged after Monday's sharp sell-off." Hiroyuki also noted that lingering concerns over a potential recession, driven by ongoing trade tensions, are likely to keep the WTI price within the $55-$65 range for now.

On Monday, US President Donald Trump reiterated his criticism of Federal Reserve Chair Jerome Powell, warning that the US economy could slow unless interest rates are cut immediately. His remarks stoked concerns about the Fed's independence and added to uncertainty surrounding US monetary policy.

"The increasing unpredictability of US monetary policy is expected to weigh on financial markets and the broader economy, raising fears of declining crude oil demand," analysts noted. A Reuters poll conducted on April 17 indicated that investors now see a nearly 50% chance of a US recession within the next 12 months, driven largely by the impact of current tariff policies.

Meanwhile, developments in US-Iran relations could further pressure oil prices. Over the weekend, both nations agreed to begin drafting a framework for a potential nuclear deal. Any breakthrough could ease supply concerns, as Iran remains a key Oil producer.