|

WTI retreats from a multi-week high and holds above $80.20, Chinese PMI eyed

  • WTI retreats from a multi-week high of $80.50 ahead of Chinese data.
  • The US Core PCE Price Index came in at 4.1% annually versus 4.6% prior and below expectations of 4.2%.
  • Oil traders will focus on the Chinese NBS Purchasing Managers Index (PMI) and the development of the stimulus plan in China.

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around the $80.20 mark so far in the early Asian session. WTI prices retreat from multi-week highs following the US Personal Consumption Expenditures (PCE) Price Index and the Michigan Consumer Sentiment Index on Friday. Oil traders will keep an eye on the Chinese inflation data and developments about the Chinese stimulus plan for fresh impetus later in the day.

On the US Dollar front, the Personal Consumption Expenditures (PCE) Price Index for June fell to 3% from 3.8% in May, below the market's expectation of 3.1%. The Federal Reserve's preferred measure of inflation, the Core PCE Price Index, came in at 4.1% annually, down from 4.6% in May and worse than expected at 4.2%. Also, the final readings of the Michigan Consumer Sentiment Index for July decreased to 71.6 from 72.6, and the University of Michigan's (UoM) 5-year Consumer Inflation Expectations fell to 3.0% from 3.1% prior and as market expectations.

That said, China, the world’s second-largest oil consumer, signaled additional support for the real estate sector and measures to stimulate domestic consumption amid a sluggish post-COVID recovery. The State Council Information Office of China revealed that Li Chunlin, vice chairman of the National Development and Reform Commission, and officials from the Ministry of Industry and Information Technology, the Ministry of Commerce, and the State Administration of Market Regulation will hold a press conference at 7 a.m. GMT to announce additional measures to boost consumption. The development of the headline might support further upside in the WTI price.

Market players will watch the Chinese NBS Manufacturing and Non-Manufacturing Purchasing Managers Index (PMI). The upbeat data might encourage WTI prices, while the softer data might fuel concern about the economic slowdown in the world’s second-largest economy. This, in turn, might exert pressure on WTI prices.

Apart from this, WTI has risen for four weeks due to OPEC+ supply cuts. OPEC+ announced a five-year supply cut of over five million barrels per day (bpd), or 5% of world oil production in April. It is expected that Saudi Arabia will prolong its 1 million barrel oil production reduction into September after extending it into August. Market players will monitor the OPEC+ group's Joint Ministerial Monitoring Committee (JMMC), scheduled for August 4, for fresh impetus.

Moving on, oil traders will focus on the Chinese PMI data and the development of more stimulus plans later in the day. The attention will shift to the US employment data. The JOLTS Job Openings report, ADP Private Employment, Weekly Jobless Claims, and Unit Labour Cost will be released later this week. The week's key event is the Nonfarm Payrolls report, due on Friday. These events could significantly impact the USD-denominated WTI price. Oil traders will take cues from the data and find trading opportunities around the WTI price.

WTI US OIL

Overview
Today last price80.23
Today Daily Change-0.27
Today Daily Change %-0.34
Today daily open80.5
 
Trends
Daily SMA2075.46
Daily SMA5072.66
Daily SMA10073.58
Daily SMA20076.55
 
Levels
Previous Daily High80.54
Previous Daily Low78.92
Previous Weekly High80.54
Previous Weekly Low76.38
Previous Monthly High74.36
Previous Monthly Low66.95
Daily Fibonacci 38.2%79.92
Daily Fibonacci 61.8%79.54
Daily Pivot Point S179.43
Daily Pivot Point S278.36
Daily Pivot Point S377.81
Daily Pivot Point R181.06
Daily Pivot Point R281.61
Daily Pivot Point R382.68

Author

Lallalit Srijandorn

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

More from Lallalit Srijandorn
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD stays bid above 1.1700 as risk flows dominate

EUR/USD posts small gains above 1.1700 in early European trading hours on Monday. The US Dollar remains broadly subdued amid a risk-on market profile, underpinning the pair. 

GBP/USD clings to recovery gains near 1.3400

GBP/USD is clinging to recovery gains near 1.3400 in early Europe on Monday. The pair capitalizes on an upbeat market mood and a steady US Dollar as traders digest the recent

 monetary policy decisions by the Fed and the BoE.

Gold hits fresh record highs above $4,400 amid renewed geopolitical woes

Gold is hitting fresh record highs above $4,400 early Monday, helped by renewed geopolitical tensions. Israel-Iran conflict and US-Venezuela headlines drive investors toward the traditional store of value, Gold. 

Bitcoin, Ethereum and Ripple eye breakout for fresh recovery

Bitcoin, Ethereum, and Ripple are approaching key technical levels at the time of writing on Monday as the broader crypto market stabilizes. Market participants are closely watching whether BTC, ETH, and XRP can sustain breakouts and achieve decisive daily closes above nearby resistance levels, which could signal the start of a short-term recovery.

De-dollarisation by design: Gold’s partner in the new system

You don’t need another 2008 for the system to reset. You just need enough nations to stop settling trade in dollars. And that’s already happening. "If gold is the anchor, what actually moves value in a post-dollar world?” It’s a question most gold investors overlook. We think in terms of storage and preservation, but in the new rails being built, settlement speed matters just as much as soundness of money.

XRP rebounds amid ETF inflows and declining retail demand demand

XRP rebounds as bulls target a short-term breakout above $2.00 on Friday. XRP ETFs record the highest inflow since December 8, signaling growing institutional appetite.