Investments
WTI prints a multi-week high above $79.00
- US crude oil benchmark advanced more than 2%, sponsored by China’s data.
- The US Dollar remains offered across the board after the US ISM Services PMI.
Western Texas Intermediate (WTI) resumed its uptrend after a report by the Wall Street Journal (WSJ) spurred a fall of 3% on speculations that one of the largest oil producers worldwide threatened to leave the Organization of the Petroleum Exporting Countries (OPEC). However, those rumors were dismissed, according to Reuters. At the time of writing, WTI is trading at $79.06, up 2.50%.
During the Wall Street opening, rumors that the United Arabe Emirates (UAE) discussed leaving OPEC as the country has been seeking authorization to increase its crude output. Consequently, WTI fell 3% towards three-day lows before recovering some ground.
Oil prices have been bolstered throughout the week by a shortage of crude oil, on speculations that China’s reopening would increase demand for crude. Additionally, business activity in China gathered momentum with Caixin’s Manufacturing and Services PMI’s re-entering expansionary territory.
WTI prices shrugged off an increase in US stockpiles for the tenth straight week, as record exports of US crude made for a smaller increase than in recent weeks.
Meanwhile, US data revealed in the week showed that business activity in the manufacturing and services segment improved to expansionary territory. Although it’s positive news for growth, Federal Reserve officials would continue to tighten monetary conditions to curb inflation to its 2% target.
In the meantime, the US Dollar Index, a gauge of the buck’s value against a basket of peers, is retreating 0.16%, down at 104.752, a tailwind for the US dollar-denominated oil price.
WTI Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Subscribe to our weekly newsletter below and never miss the latest NEWS or an exclusive offer.