WTI holds in $72.70s, down on the day as fundas weigh

WTI holds in $72.70s, down on the day as fundas weigh

Time Stamp: May 10, 2023 4:04 PM
Source Node: 2641970

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  • WTI is in consolidation following a series of news events that have pressured crude prices.
  • A combination of risk-off and industry data sees crude lower by over 1%.

West Texas Intermediate, WTI, crude oil is down on the day by some 1.28% after the United States reported inflation in April fell for a tenth straight month. A separate industry-related report also showed US inventories are on the rise. WTI has traveled between a high of $73.83 and a low of $71.86bbls.

Firstly, the US Consumer Price index climbed by 4.9% on an annualized basis in April, under the consensus forecast for a 5% rise, helping to lift spirits in financial markets initially. Core inflation, which excludes volatile food and fuel prices rose 5.5% from 5.6%, matching estimates. However, there was a bout of risk-off that came through late r in the day as the data shows that inflation is still well above the Federal Reserve’s target.

´´Increasingly, we expect the Federal Reserve will have to balance risks between sticky inflation, and slowing growth momentum / tighter financial conditions. We continue to expect the move last week to be the last one this cycle, leaving the Fed on hold until later this year,´´ analysts at RBC Economics argued. 

In other news, the United States suspended further sales from its Strategic Petroleum Reserve, and Crude oil inventories for the current week showed a build of 2.951M versus -0.917M draw. 

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