|

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:

Editor's Picks

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary. 

Breaking: US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.