WTI defends four-day winning streak ahead of US inflation data

WTI bulls take a breather after four-day uptrend, sidelined of late. US SPI refill concerns, geopolitical woes join sluggish US Dollar to favor Oil buyers. Mixed sentiment, recession fears and US debt-ceiling jitters weigh on commodity price.

WTI crude oil remains static around mid-$73.00s amid the early hours of Wednesday’s Asian session, after portraying a four-day rebound from the lowest levels since December 2021.

Oil price portrays the market’s cautious mood ahead of the key US inflation data, as well as mixed clues from the ongoing US debt-ceiling talks in the White House. However, talks of the US readiness to refill the US Strategic Petroleum Reserves (SPR) allow the WTI buyers to remain hopeful.

US President Joe Biden’s administration plans to begin purchasing crude oil to fill strategic crude oil reserves after completing maintenance later this year. The start of summer season in the Northern Hemisphere and voluntary production cuts by members of the Organization of the Petroleum Exporting Countries (OPEC) are expected to bolster oil prices.

Alternatively, the weekly prints of the American Petroleum Institute’s (API) Crude Oil Stock data and firmer US Dollar prod the energy benchmark prices as the key lure buyers. The weekly API inventories for the period ended on May 05 rose to 3.618M versus -3.939M prior.

Moving on, the US Consumer Price Index (CPI) for April and the official Weekly Crude Oil Stocks Change data from the US Energy Information Administration (EIA) will be crucial for clear directions.