WTI extends its downside below $73.50 amid the demand concern
- WTI loses traction near $73.30 on concern about oil demand.
- China's Services PMI surged to 51.5 in November vs. 50.4 prior.
- Oil traders await the US ISM Services PMI, due later on Tuesday.
Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $73.30 so far on Tuesday. WTI prices attract some sellers as investors are concerned about oil demand and the uncertainty about the depth and duration of OPEC+ supply cuts.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to voluntary output cuts for the first quarter of 2024. However, investors doubt how output cutbacks will be measured.
Early Tuesday, China's Services Purchasing Managers' Index (PMI) surged to 51.5 in November from the October reading of 50.4, better than the estimation of 50.8. However, the NBS Manufacturing and Services PMI data last week came in worse than expected. The mixed Chinese economic data raises concerns about the recovery of China’s economy. This, in turn, weighs on the black gold, as China is the world's largest gold producer and consumer.
Looking ahead, oil traders will monitor the US ISM Services PMI due on Tuesday. Later this week, the attention will shift to the Nonfarm Payrolls on Friday. These events could significantly impact the USD-denominated WTI price. Oil traders will take cues from the data and find trading opportunities around WTI prices.
Reprinted from FXStreet_id,the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.