WTI tumbles to near $77.00 amid uncertainty ahead of China/US CPI, Fed’s outcome

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

■WTI corrects to $77.00 as investors turn cautious ahead of eventful Wednesday.

■China’s PPI is expected to continue its deflating streak.

■The Fed is widely anticipated to maintain interest rates steady in the 5.25%-5.50% range.


West Texas Intermediate (WTI), futures on NYMEX, declines to near $77.00 in Tuesday’s New York session. The oil price's appeal has remained significantly strong in the past few trading sessions, as investors were upbeat on demand due to the summer vacation season in the Northern Hemisphere.


The black gold recovered sharply after declining to a four-month low near $72.50. That sell-off was driven by the OPEC  meeting in which members communicated about shrinking production cuts to some extent.


However, uncertainty among investors ahead of the May Consumer Price Index (CPI) data release in the world’s largest and second-largest nations has kept a lid on the Oil price. Investors will keenly focus on China’s annual CPI data, which is estimated to have grown steadily by 0.3%.


Market participants will also pay close attention to annual Producer Price Index (PPI) numbers, which indicate changes in prices set by business owners at their premises. The PPI data is expected to have deflated at a slower pace of 1.8% from the prior reading of 2.5%. It is worth noting that China is the second largest importer of Oil in the world, and strong demand from the region improves the global Oil demand outlook.


Meanwhile, the US inflation data will also be on the radar as investors want to know whether price pressures are progressively declining towards the desired rate of 2%. Signs of inflation remaining stubborn would shrink market speculation for Federal Reserve (Fed) rate cuts. Currently, investors expect that the Fed will cut interest rates only once this year.


The major event for the market will be the Fed’s interest rate decision on Wednesday. The Fed is expected to remain status-quo with a hawkish interest rates outlook.


WTI US OIL

Overview
Today last price 77.12
Today Daily Change -0.78
Today Daily Change % -1.00
Today daily open 77.9
 
Trends
Daily SMA20 77.28
Daily SMA50 80.33
Daily SMA100 79.17
Daily SMA200 79.35
 
Levels
Previous Daily High 77.94
Previous Daily Low 75.03
Previous Weekly High 77.36
Previous Weekly Low 72.46
Previous Monthly High 81.25
Previous Monthly Low 76.04
Daily Fibonacci 38.2% 76.83
Daily Fibonacci 61.8% 76.14
Daily Pivot Point S1 75.97
Daily Pivot Point S2 74.05
Daily Pivot Point S3 73.06
Daily Pivot Point R1 78.88
Daily Pivot Point R2 79.86
Daily Pivot Point R3 81.78

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

Do you find this article useful?
Related Articles
placeholder
US oil futures rise from lows after API reports surprise decline in crude stocksInvesting.com -- U.S crude oil futures rose in post-settlement trading Tuesday as the American Petroleum Institute reported an unexpected decline in domestic weekly crude stocks.
Author  Investing.com
7 hour ago
Investing.com -- U.S crude oil futures rose in post-settlement trading Tuesday as the American Petroleum Institute reported an unexpected decline in domestic weekly crude stocks.
placeholder
WTI holds below $79.50 amid demand concernsWest Texas Intermediate (WTI), the US crude oil benchmark, is trading around $79.00 on Tuesday.
Author  FXStreet
Yesterday 01: 44
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $79.00 on Tuesday.
placeholder
Oil prices dip on China demand concerns, set for weekly lossInvesting.com-- Oil prices fell in Asian trade on Friday, and were headed for a weekly loss amid persistent concerns over slowing demand in top importer China, while sentiment was also dented by conce
Author  Investing.com
Jul 19, Fri
Investing.com-- Oil prices fell in Asian trade on Friday, and were headed for a weekly loss amid persistent concerns over slowing demand in top importer China, while sentiment was also dented by conce
placeholder
Oil prices fall amid China demand woes, rate cut hopesInvesting.com-- Oil prices fell in Asian trade on Tuesday, weighed chiefly by signs of increasing economic weakness in top importer China, which could limit demand in the coming months.
Author  Investing.com
Jul 16, Tue
Investing.com-- Oil prices fell in Asian trade on Tuesday, weighed chiefly by signs of increasing economic weakness in top importer China, which could limit demand in the coming months.
placeholder
Oil prices rise amid rate cut cheer, summer demand hopesInvesting.com-- Oil prices rose in Asian trade on Friday amid optimism over U.S. interest rate cuts and improved summer demand, but were still set for weekly losses on some profit-taking.
Author  Investing.com
Jul 12, Fri
Investing.com-- Oil prices rose in Asian trade on Friday amid optimism over U.S. interest rate cuts and improved summer demand, but were still set for weekly losses on some profit-taking.