WTI supported above $ 54 ahead of API data
- Oil firmer amid upbeat Chinese PMI, USD weakness and Iran tensions.
- All eyes on USD dynamics, risk trends and API Crude Stocks data,
WTI (futures on Nymex) is looking to extend the recovery from four-week lows in the European session, having found support just ahead of the 54 handle.
Upbeat Chinese Services PMI eases global growth woes
The black gold built on Tuesday’s recovery, as upbeat Chinese Caixin Services PMI data for August somewhat eased concerns over a Chinese as well as global economic slowdown. Markets remain wary about the oil demand growth outlook, in the face of weakening global economy. China is the world’s second-largest oil consumer.
Moreover, disappointing US ISM Manufacturing PMI data-led broad-based US dollar weakness also continues to lend support to the barrel of WTI, as US-China trade war fears take a back seat. A weaker greenback makes the USD-denominated oil cheaper for holders in foreign currencies. The USD index dives deeper into the red zone, now losing -0.30% to trade at three-day troughs of 98.67.
Meanwhile, the revival of the geopolitical tensions surrounding Iran and Europe could threaten oil supplies, in turn collaborating to the buoyant tone around the commodity. Iran’s Pres. Rouhani: Unlikely that we will reach a result with Europe by today or tomorrow
Markets now await the US weekly Crude Stocks data due later today for fresh direction on the prices. The American Petroleum Institute (API) will publish its data at 2030 GMT. There is a delay in data release due to the US Labor Day holiday on Monday.
WTI Levels to watch