WTI struggles around $96.00 amid supply worries

WTI pares the biggest daily loss in one week ahead of the key activity data for July. Restoration of Nord Stream 1 gas pipeline drowned oil prices despite positive risk appetite and the softer US dollar. Libya’s resumption of oil production, ECB rate hikes and fears of a recession in China favour sellers.

WTI crude oil prices remain sidelined at around $96.00 after posting the biggest daily slump in eight days, as energy traders await new clues. Oil heavily slid on the previous day, despite the risk-on mood, amid fears of more output and less demand.

The resumption of gas flows from Russia’s Nord Stream 1 pipeline was the key catalyst weighing the oil prices. Flows through Russia’s Nord Stream 1 natural gas pipeline, which runs under the Baltic Sea to Germany, partially resumed after being shut for maintenance on July 11.

Moving on, the preliminary activity details for July will be important for the oil traders amid fears of an economic slowdown.