Concerns about a tighter oil market help WTI.
WTI price is supported by OPEC+ stalemate and optimistic API data.
Covid updates, EIA statistics, and Powell take center stage.
WTI (futures on the New York Mercantile Exchange) has halted its overnight fall from five-day highs of $75.52, as bulls reclaimed bids over $75.
As the US dollar loses ground across the board, bolstering the USD-denominated WTI, US oil is striving to reclaim its footing above the latter.
The dollar’s post-inflation rise has stalled as investors take profits ahead of Fed Chair Jerome Powell’s Congressional testimony. On Tuesday, US inflation hit its highest level in 13 years, boosting Fed tightening predictions.
Despite the risk-off mentality, oil prices rose 2% on Tuesday, as fears of a tighter market were heightened by the OPEC+ deadlock and declining US crude and gasoline stocks, despite hawkish Fed views.
Looking ahead, it’ll be interesting to watch if the black gold can maintain its gains as Delta covid variant fears grow, adding to the risk-averse market environment. Markets are also looking forward to the Energy Information Administration’s (EIA) weekly crude stocks data, which will be released on Wednesday.
The American Petroleum Institute (API) reported on Tuesday that oil stocks in the United States dropped by 4.1 million barrels for the week ending July 9./n
