WTI sticks to modest gains around $76.50 ahead of the US PMI data

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $76.50 so far on Friday. WTI posts modest gains as the Organization of Petroleum Exporting Countries and allies (OPEC+) confirmed the next meeting about production cuts on November 30.

Early Friday, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) confirmed to hold their next meeting on November 30 virtually. Oil traders will monitor the decision on the oil output level. That being said, Saudi Arabia, the world's largest oil exporter, is planning to extend oil production cuts by 1 million barrels a day until next year, while OPEC+ members consider further supply cuts due to falling oil prices. If OPEC+ decides not to deepen output cuts next year, this could drag oil prices lower.

About the data, US crude oil inventories increased by 8.70M barrels for the week ending November 17 from the previous reading of 4.60M barrels gain, according to the U.S. Energy Information Administration’s (EIA) weekly report on Thursday. The market consensus expected a 0.90M barrel increase.

On the other hand, the hope for a fresh Chinese stimulus plan might cap the downside of WTI prices. According to Bloomberg, Chinese authorities have reportedly included Country Garden Holdings Co on a list of 50 eligible property developers that would have access to financing. Other troubled developers on the list are Sino-Ocean Group and CIFI Holdings. It’s worth noting that China is the major oil consumer in the world and the positive outlook on the Chinese economy lifts the WTI prices.

Moving on, oil traders will take more cues from the US S&P Global PMI data on Friday. The Manufacturing PMI is anticipated to drop from 50.0 to 49.8 while Services PMI is estimated to ease from 50.6 to 50.4. 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 prices.