The American benchmark crude oil, WTI recovers, trading at $69.44 per barrel following the US inflation report.
China\u2019s rate cut sparks an increase in WTI price due to a potential surge in oil demand. Saudi Arabia\u2019s proposed crude output cut is expected to tighten the global market in July.
The US crude recovered some ground due to a softer US dollar following the May inflation report in the United States. At the time of writing, WTI is trading at $69.49 per barrel, a gain of more than 3%.
Fed\u2019s potential pause on rate hikes and China\u2019s rate cut boost crude oil prices. Oil prices are pairing some of its Monday losses due to several factors. Firstly, a US inflation report from the US Department of Labour justifies the Fed\u2019s stance to pause its tightening cycle, as the Consumer Price Index (CPI) rose by 4% YoY, below forecasts and the prior month\u2019s reading.
In comparison, core CPI expanded by 5.3% YoY, below April\u2019s data, aligned with estimates. That weakened the dollar as traders speculated about a less aggressive Fed. The US Dollar Index (DXY) trades with losses of 0.40%, at around three-week lows of 103.212.
Meanwhile, the People\u2019s Bank of China (PBoC) cut rates on its lending rate for the first time in 10 months, aimed to stimulate China\u2019s economy, which failed to gain momentum after lifting the Covid-19 zero-tolerance restrictions. That sparked a rise in WTI price, as China, the largest crude importer, would likely increase oil demand.
That, alongside Saudi Arabia proposed crude output cut to kick in the next month, cushioned Monday\u2019s losses and bolstered WTI price towards the $70.00 per barrel mark.
Nevertheless, a recent report by the Organization of Petroleum Exporting Countries and its allies, OPEC+, held that demand will remain steady despite slowing growth. However, it noted that Saudi Arabia\u2019s cuts would tighten the global market in July.
Further data related to oil is expected, with the International Energy Agency (IEA) will release its latest projections, while the American Petroleum Institute (API) is scheduled to unveil its estimates of US crude oil.<\/p>\n","protected":false},"excerpt":{"rendered":"
The American benchmark crude oil, WTI recovers, trading at $69.44 per barrel following the US inflation report.China\u2019s rate cut sparks an increase in WTI price due to a potential surge in oil demand. Saudi Arabia\u2019s proposed crude output cut is expected to tighten the global market in July. The US crude recovered some ground due …<\/p>\n","protected":false},"author":13,"featured_media":53340,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,36],"tags":[6832,6978,10373,8367,6909],"class_list":["post-85307","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-market-updates","tag-china","tag-cpi","tag-output-cut","tag-us-dollar","tag-wti"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/85307","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=85307"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/85307\/revisions"}],"predecessor-version":[{"id":85312,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/85307\/revisions\/85312"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/53340"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=85307"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=85307"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=85307"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}