- WTI trades at $86.62, bolstered by Saudi Arabia and Russia’s commitment to cut production by 1.3 million barrels until year-end.
- Positive economic data from China and potential end of negative interest rates in Japan support oil prices.
- Upcoming US CPI data could influence WTI prices, as they may signal further rate hikes.
Western Texas Intermediate (WTI), the US crude oil benchmark, remains steady at around yearly highs on supply oil cuts, while recent data from China painted a positive outlook in the global second largest economy. WTI is trading at $86.62 after hitting a daily high of $87.61.
US crude oil benchmark remains buoyant as Saudi-Russian supply cuts and upbeat Chinese economic outlook
Oil prices will likely remain underpinned by the supply cuts established by Saudi Arabia and Russia, which committed to slashing production by 1.3 million barrens combined until the end of the year.
Meanwhile, upbeat economic data from China from a deflationary scenario improved investors’ sentiment toward its economic recovery, a tailwind for global oil prices. That, alongside words from the Bank of Japan (BoJ) Governor Kazuo Ueda mentioning a possible end for negative interest rates, underpinned the US Dollar, which is downward pressured, changing hands below the 105.00 figure, as reported by the US Dollar Index (DXY).
Another factor that keeps the WTI price afloat is storms and floods in Eastern Lybia, which triggered the closure of four major oil export ports since Saturday.
In the meantime, a tranche of macroeconomic data could dent oil’s demand, as a major central bank and inflationary data from the US could warrant further tightening is needed. The European Central Bank (ECB) will announce its monetary policy decision on Thursday. A day earlier, the US would reveal the Consumer Price Index (CPI), which could undermine WTI price on expectations for additional rate hikes by the US Federal Reserve if it comes above estimates.
Aside from this, data from the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) is due this week. Last month, the former cut its 2024 oil demand growth to 1 million barrels per day, while OPEC kept its 2.25 million barrels per day demand growth projection unchanged.
WTI Price Action – Daily chart
WTI Key Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.