CRUDE OIL, MEXICAN PESO OUTLOOK

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WTI crude oil prices are on the cusp of dipping below $75, marking the lowest point since July on a closing basis. This downward trend is fueled by speculations surrounding a slowdown in the economies of major oil-consuming nations. Factors contributing to this decline include a surge in crude oil inventories in the United States and comments from Federal Reserve Chair Powell hinting at the potential for further monetary tightening, adding to the pressure in the energy sector.

Hedge funds and speculators operating in the futures market are actively unwinding their long positions in crude oi in response to recent price action dynamics. Despite this, the persistently high level of long positions compared to pre-summer levels suggests the potential for additional reduction in bullish bets, which could exacerbate downward momentum.