Oil rallied after Tuesday’s strong US economic data

Tuesday saw a rally in oil prices, and a bullish triangle appeared on the 4-hour chart, indicating that the bearish trend might be changing. The release of API inventory data later on Tuesday may cause some volatility in the movement of Crude Oil prices.

A recent EIA report highlights increased global demand in the second half of 2023, and Gasoline prices rise over 2.5% ahead of the US Memorial weekend holiday and expectations of increased demand during the summer driving season. Saudi Oil Minister warned speculators to “watch out”, suggesting Oil price volatility may be on the horizon.

At the time of writing, WTI Oil is trading in the lower $73s and Brent Crude Oil in the lower $77s. Oil rallies as the outlook for US growth improves. Crude is supported as US lawmakers continue negotiations to raise the debt ceiling and avoid a US government default.

Saudi Oil Minister Prince Abdulaziz bin Salman warns Oil speculators to “watch out” ahead of the OPEC+ meeting on June 4. Gasoline prices surge higher on Tuesday in response to increased demand ahead of the US Memorial weekend and the summer driving season.

Oil price struggled at the beginning of the week, partly due to global trade concerns and China banning imports of memory chips from US manufacturer Micron. The US Dollar catches a bid on Tuesday as Fed officials continue to talk about the possibility of more rate hikes. API inventory data out at 20:30 GMT will provide an indication of demand and supply dynamics in the crude market.