- Swelling US crude inventories continue to pressure oil prices.
- Losses remain capped by risk-on action in the global equities, weaker USD.
- Focus shifts to the US ADP jobs, US ISM Services and EIA crude stockpiles data.
The upside attempts in WTI (futures on Comex) continues to get sold into the latest concerns over rising US crude inventories, as reported by the American Petroleum Institute (API) a day before.
The API data showed that the US crude stocks rose by 3.5 million barrels in the week to May 31 to 478 million barrels, compared with the expectations for a decrease of 849,000 barrels.
Moreover, increased risks of a global recession amid escalating US-China trade war continue to remain a drag on the black gold, as it flags demand concerns for the commodity.
However, the buyers continue to derive support from the risk-on rally seen in the global equities that was triggered by the increased expectations of a Fed rate cut in the near future following the Fed Chair Powell’s overtly dovish comments.
Markets now look forward to the official US government weekly crude stockpiles data due to be published by the Energy Information Administration (EIA) at 1430 GMT for fresh trading impetus.
WTI Technical Levels
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