WTI crude oil loses traction near the $74.20 mark as markets turn cautious
- WTI crude oil struggles to gain traction around $74.20 during Tuesday’s Asian session.
- The softer Chinese growth figure raises concern about an economic slowdown in the nation.
- Saudi Arabia’s supply cuts and easing inflation in the US have boosted crude oil prices in recent weeks.
Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around the $74.20 mark so far this Tuesday. WTI retreats from around $77 after the weaker-than-expected Chinese growth figure raises concern about an economic slowdown in the world’s second-largest oil consumer.
The National Bureau of Statistics reported that the Chinese Gross Domestic Product came in at 6.3% annually, worse than expected at 7.3% and 4.5% prior. The annual rate was the fastest pace since the second quarter of 2021. However, it was considerably skewed by last year’s COVID-19 lockdowns in Shanghai and other large cities.
On the US-China headline, the US climate envoy John Kerry met China’s climate diplomacy Xie Zhenhua on Tuesday in an effort to rebuild trust between the world’s two largest economies. Oil traders will closely watch this headline for a fresh impetus in WTI price. The renewed tensions between the US-China could cap the potential upside in crude oil prices.
On the other hand, Saudi Arabia’s supply cuts and easing inflation in the US have boosted crude oil prices in recent weeks. Russian oil exports are expected to fall by 100,000-200,000 barrels per day (bpd) next month, showing that Moscow is following through on a vow to cut output alongside Saudi Arabia.
Looking ahead, the July US Retail Sales will be released. Also, oil traders will take cues from the weekly official oil inventory data released by the Energy Information Administration (EIA) on Wednesday and find opportunities around WTI crude oil.