WTI sticks to modest intraday gains near multi-day top, just below $82.00 mark


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  • WTI
    attracts
    buyers
    for
    the
    second
    straight
    day
    and
    draws
    support
    from
    a
    combination
    of
    factors.

  • A
    drop
    in
    US
    inventories,
    supply
    disruption
    worries
    and
    a
    softer
    USD
    act
    as
    a
    tailwind
    for
    Oil
    prices.

  • China’s
    economic
    woes
    might
    cap
    any
    further
    gains
    ahead
    of
    the
    crucial
    US
    CPI
    report
    later
    today.

West
Texas
Intermediate
(WTI)
US
crude
Oil
prices
build
on
the
overnight
recovery
from
the
vicinity
of
the
$80.00
mark,
or
a
two-week
low
and
gain
some
follow-through
positive
traction
during
the
Asian
session
on
Thursday.
The
uptick
is
supported
by
a
combination
of
factors
and
lifts
the
commodity
to
a
multi-day
peak,
around
the
$82.00
round
figure
in
the
last
hour.

The
Organization
of
the
Petroleum
Exporting
Countries
(OPEC)
maintained
its
forecast
for
relatively
strong
growth
in
global
Oil
demand
this
year
and
next.
Adding
to
this,
the
US
Energy
Information
Administration
(EIA)
reported
that
crude
inventories
fell
by
3.4
million
barrels
to
445.1
million
barrels
in
the
week
ended
July
5,
far
exceeding
analysts’
expectations.
This
is
seen
underpinning
Crude
Oil
prices
amid
a
modest
US
Dollar
(USD)
weakness.


Federal
Reserve

(Fed)
Chair
Jerome
Powell,
during
the
Congressional
testimony,
said
that
the
US
remained
on
a
path
to
stable
prices
and
continued
low
unemployment.
The
comments
reaffirmed
market
expectations
that
the
Fed
will
lower
borrowing
costs
in
September
and
cut
interest
rates
again
in
December.
The

outlook

keeps
the
USD
bulls
on
the
defensive
and
seems
to
benefit
the
USD-denominated
commodities,
including
Crude
Oil
prices.

Furthermore,
concerns
about
supply
disruptions
stemming
from
the
ongoing
conflicts
in
the
Middle
East
turn
out
to
be
another
factor
lending
some
support
to
the
black
liquid.
Meanwhile,
weak
inflation
data
from
China

the
world’s
top
Oil
importer

might
cap
the
upside
for
Crude
Oil
prices.
Traders
might
also
prefer
to
wait
for
the
release
of
the
US
consumer
inflation
figures
before
positioning
for
the
next
leg
of
a
directional
move.

WTI
Oil
FAQs

WTI
Oil
is
a
type
of
Crude
Oil
sold
on
international
markets.
The
WTI
stands
for
West
Texas
Intermediate,
one
of
three
major
types
including
Brent
and
Dubai
Crude.
WTI
is
also
referred
to
as
“light”
and
“sweet”
because
of
its
relatively
low
gravity
and
sulfur
content
respectively.
It
is
considered
a
high
quality
Oil
that
is
easily
refined.
It
is
sourced
in
the
United
States
and
distributed
via
the
Cushing
hub,
which
is
considered
“The
Pipeline
Crossroads
of
the
World”.
It
is
a
benchmark
for
the
Oil
market
and
WTI
price
is
frequently
quoted
in
the
media.

Like
all
assets,
supply
and
demand
are
the
key
drivers
of
WTI
Oil
price.
As
such,
global
growth
can
be
a
driver
of
increased
demand
and
vice
versa
for
weak
global
growth.
Political
instability,
wars,
and
sanctions
can
disrupt
supply
and
impact
prices.
The
decisions
of
OPEC,
a
group
of
major
Oil-producing
countries,
is
another
key
driver
of
price.
The
value
of
the
US
Dollar
influences
the
price
of
WTI
Crude
Oil,
since
Oil
is
predominantly
traded
in
US
Dollars,
thus
a
weaker
US
Dollar
can
make
Oil
more
affordable
and
vice
versa.

The
weekly
Oil
inventory
reports
published
by
the
American
Petroleum
Institute
(API)
and
the
Energy
Information
Agency
(EIA)
impact
the
price
of
WTI
Oil.
Changes
in
inventories
reflect
fluctuating
supply
and
demand.
If
the
data
shows
a
drop
in
inventories
it
can
indicate
increased
demand,
pushing
up
Oil
price.
Higher
inventories
can
reflect
increased
supply,
pushing
down
prices.
API’s
report
is
published
every
Tuesday
and
EIA’s
the
day
after.
Their
results
are
usually
similar,
falling
within
1%
of
each
other
75%
of
the
time.
The
EIA
data
is
considered
more
reliable,
since
it
is
a
government
agency.

OPEC
(Organization
of
the
Petroleum
Exporting
Countries)
is
a
group
of
13
Oil-producing
nations
who
collectively
decide
production
quotas
for
member
countries
at
twice-yearly
meetings.
Their
decisions
often
impact
WTI
Oil
prices.
When
OPEC
decides
to
lower
quotas,
it
can
tighten
supply,
pushing
up
Oil
prices.
When
OPEC
increases
production,
it
has
the
opposite
effect.
OPEC+
refers
to
an
expanded
group
that
includes
ten
extra
non-OPEC
members,
the
most
notable
of
which
is
Russia.