- WTI is trimming some of its Tuesday’s losses, up by 0.80% in the North American session
- US EIA stockpiles shed 7.06 million barrels last week, spurring a jump in oil prices.
- China’s slower-than-expected growth pace, and Iran’s nuclear deal agreement, put a lid on higher oil prices.
Western Texas Intermediate (WTI) prices seesaw in a thin trading session after a US stockpile inventory spurred an uptick in oil prices when the US EIA revealed its weekly report illustrating that demand remains strong. At the same time, the US assesses Iran’s proposals for a nuclear deal.
In the meantime, WTI is trading at $87.84 PB, above its opening price, registering gains of 0.85% after hitting a daily low of $85.90.
WTI rises on lower US stockpiles
Sentiment deteriorated since the beginning of the European session. European bourses ended in the red, while US equities are dropping. The greenback rises, underpinned by Investors’ appetite for safe-haven assets, with the US Dollar Index hitting fresh three-week highs around 106.943, but at the time of writing, is at 106.752, up 0.27%.
The US EIA report showed that inventories fell by 7.06 million last week, while exports increased due to European buyers replacing Russia’s oil. Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) new Secretary Haitham Al Ghais said that he was confident that global oil demand would increase by almost 3 million barrels a day, in 2022, via Bloomberg.
Aside from this, worries that China’s economy might grow at a slower pace keep oil participants uneasy. China’s Premier Li Kequiang demanded local officials, that account for 40% of China’s economy, to bolster growth measures following softer-than-expected Industrial Production and Retail sales.
Therefore, the WTI outlook is slightly tilted to the downside, as further news points to lower demand but increasing offers, exacerbating downward pressure on oil prices.
WTI Key Technical Levels
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