Pre Open US - US Oil 10 Aug 2023

Recent days have seen a boost in oil prices due to Saudi Arabia and Russia extending output cuts. This has been accompanied by concerns about supply, driven by the potential for tensions between Russia and Ukraine in the Black Sea region to impact Russian oil shipments.

Attention is focused on the upcoming release of July consumer price data from the United States on Thursday. This data is expected to offer insights into the future monetary policy of the US Federal Reserve.

Adding to the price dynamics, US crude inventories saw an unexpected increase of 5.9 million barrels in the past week, surpassing the 0.6 million barrel rise projected by analysts in a Reuters poll. This information was revealed by the US Energy Information Administration's Wednesday report.

Similarly, US crude oil exports encountered a remarkable reduction of 2.9 million barrels per day during the past week, marking a record-breaking decline. Notwithstanding this decline, market sentiment foresees a future increase in crude exports, attributed to the dynamics between US crude futures and the Brent spread. This viewpoint was conveyed by Phil Flynn, an analyst at Price Futures Group.

Meanwhile, recent data has indicated that the consumer sector in China entered a state of deflation, and factory gate prices continued to decline throughout July. These trends have raised concerns about fuel demand in the world's second-largest economy.

Technically, WTI made an awaited breakout beyond the 83-resistance level and now the 100MA on the weekly channel will be the next challenge.