|

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

GBP/USD dips below 1.3350 with bullish momentum losing steam

The British Pound ticks lower against the US Dollar Monday, attempting to close a seven-day rally, as tensions rise again in the Strait of Hormuz, one of the critical points in the peace process between Washington and Tehran. The GBP/USD pair trades near 1.3340 at the time of writing, down from 1.3387 highs last week, although it maintains a near-term bullish trend intact.

EUR/USD clings to daily gains, still below 1.1450

EUR/USD manages to shrug off the initial bearish tone and advances toward the 1.1440-1.1450 band on Monday, up modestly for the day. Meanwhile, the pair’s mild gains comes on the back of the lack of clear direction in the Greenback in quite an apathetic start to the week.

Gold remains offered below $4,200

Gold comes under fresh downside pressure on Monday, reversing three daily upticks in a row and meeting some initial resistance around the $4,200 mark per troy ounce. Safe-haven demand has shifted toward the US Dollar as renewed tensions surrounding the Strait of Hormuz weigh on market sentiment, limiting the precious metal's upside.

XRP extends decline as risk-off sentiment, fading retail demand weigh
Ripple (XRP) sustains losses on Monday, edging lower toward the short-term $1.10 support. XRP failed to sustain momentum above $1.20 on the previous day, prompting profit-taking amid a broader crypto market drawdown attributed to mild inflows into related digital investment products, declining retail participation and macroeconomic uncertainty.
The US Dollar just beat the Swiss Franc at its own safe-haven game

As the king among safe havens, the Swiss Franc is supposed to benefit from geopolitical shocks such as the Iran war. This time, it didn’t. The Swissie is nearly 6% below January’s peak against the USD after a sharp decline that came along with the war in Iran and the closure of the Strait of Hormuz.

Kevin Warsh offers no policy clues: Why markets still got their answer

Financial markets came to Sintra looking for clues about the Federal Reserve's (Fed) next move. They largely left with confirmation that Fed Chair Kevin Warsh intends to make those clues much harder to find.