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WTI barrel reached a high of $76.11 on Thursday, but later settled below $76.00. The US crude benchmark is currently trading at $75.72.
The WTI’s upwards potential is limited by a cautious market environment and a strong dollar, while reports of oil American stocks may limit the downside.
Crude oil stocks fell in the week ending July 14, and the US Energy Information Administration reported a 708,000 barrel drop, lifting the black gold’s price. The USD recovered amid lower-than-expected Jobless Claims, with fewer people filing for unemployment benefits.
US Treasury yields advanced, with the 2-year yield showing nearly 2% gains and the 5- and 10-year yields rising to 4.10% and 3.84%, respectively.
Markets have discounted a 25 basis point hike for next week’s meeting, but the odds of a hike beyond July remain low. Higher rates are negatively correlated with oil prices, as they cool down economic activity and lower energy demand.
