- WTI remains under pressure below the $80.00 mark on Thursday.
- S&P Global PMI in the US, UK, Japan and the Eurozone came in below the market expectation.
- Saudi Arabia’s ongoing voluntary oil cut supports WTI price.
- Oil traders will closely watch the Jackson Hole annual symposium.
Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around the $78.47 mark so far on Thursday. WTI remains under selling pressure and falls to fresh four-week lows of $77.68 per barrel in the earlier session following the softer PMI data worldwide and a larger-than-expected drop in US crude inventories.
On Wednesday, S&P Global PMI data showed that the business activity in the US, UK, Japan and the Eurozone lose momentum as the figure came in below the expectation. This, in turn, weighs on the WTI prices as a global economic downturn could diminish oil demand.
Market players will take cues about the interest rates outlook from the Jackson Hole Symposium on Thursday. Hawkish comments from the central banks’ policymakers might limit the upside for WTI. It’s worth noting that higher interest rates raise borrowing costs, which can slow the economy and diminish oil demand.
About the data, the American Petroleum Institute (API) reported on Wednesday that US crude oil inventories in the week ending of August 18 totaled -2.418M barrels compared to the previous week’s -6.195M. On the same line, the Energy Information Administration (EIA) revealed that US crude oil stock change declined by 6.135M barrels, against the market expectation of a 2.85M barrels drop.
Meanwhile, higher oil prices have been supported by tighter supply caused by Saudi Arabia’s ongoing voluntary production curbs. Saudi Arabia is expected to extend a voluntary oil cut of 1 million barrels per day for the third month in a row into October.
Moving on, oil traders will focus on the release of US weekly Jobless Claims and Durable Goods Orders later in the day. Attention will turn to the Jackson Hole annual symposium and the Federal Reserve (Fed) Chairman Jerome Powell’s Speech on Thursday and Friday, respectively. These events could significantly impact the USD-denominated WTI price. Oil traders will take cues from the data and find trading opportunities around the WTI price.