WTI consolidates above $81.50 amid softer USD, supply squeeze
- Western Texas Intermediate (WTI) pares part of its initial losses on Tuesday.
- Demand worries and OPEC’s failure to add more supply weigh on crude oil.
- US Dollar Index records fresh daily low around 93.73, US yields retreat too.
Western Texas Intermediate (WTI) consolidates gains on Tuesday in the Asian session. After recording a fresh 7-year high, WTI closed lower in the previous session. At the time of writing, WTI is trading at $81.62, up 0.04% for the day.
Crude oil prices fail to sustain the upside momentum after the US and China data highlighted the risk of the global growth recovery, ultimately affecting the demand scenario. China’s Gross Domestic Product (GDP) expanded by 4.9% in Q3 on yearly basis amid significant headwinds from power shortages and the coronavirus outbreak, which hindered the supply chain. China’s daily crude oil production rate fell again in the previous month to the lowest level since May 2020.
In addition to that, the US Factory Output dropped 1.3% in September, the most in the seven months, resulting from the impact of Hurricane Ida.
Furthermore, OPEC and its allies have been struggling to add crude back to the market as oil cuts fell slightly to 115% in Septembember. Angola and Nigeria failed to add more production due to lack of investment and exploration.
As for now, the US dollar dynamics and the demand-supply constraint continue to influence WTI prices.
WTI additional levels