Home / Market Update / Commodities / After CPI, WTI holds around the $72.80s, down on the day.

After CPI, WTI holds around the $72.80s, down on the day.

Following a string of news stories that put pressure on crude prices, WTI is consolidating. Risk-off sentiment and business data cause crude to decline by more than 1%.

After the United States reported that inflation in April fell for a tenth consecutive month, WTI crude is down on the day by about 1.28%. US inventories are increasing, according to a different assessment on the business. From a high of $73.83 to a low of $71.86 per barrel, WTI fluctuated and is trading at $72.87 at the time of writing.

First, the US Consumer Price index rose by 4.9% on an annualised basis in April, less than the consensus expectation of a 5% increase, initially boosting confidence in the financial markets. The expected increase in core inflation, which includes volatile food and fuel prices, was 5.5% from 5.6%.

However, a wave of risk-off emerged later in the day because the numbers indicate that inflation is still significantly higher than the Federal Reserve’s target. Analysts predict that the Federal Reserve will increasingly need to strike a compromise between the risks of sticky inflation and sluggish growth momentum/tighter financial conditions. We still anticipate that the action taken last week will be the final one for this cycle, putting the Fed on hold until later in the year.

In other news, the United States suspended further sales from its Strategic Petroleum Reserve, and Crude oil inventories for the current week showed a build of 2.951M versus -0.917M draw.

Check Also

Asian Markets Mixed as U.S. Election and China’s Fiscal Policies Weigh on Sentiment

Most Asian markets faced declines on Tuesday, with traders cautious ahead of the U.S. presidential …