WTI extends losses below $73.50 amid concerns over demand
- WTI loses traction near $73.30 on concerns 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 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 Oil 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.
(This story was corrected on December 5 at 07:12 GMT to say that China is the largest Oil consumer, not Gold.)
Author
Lallalit Srijandorn
FXStreet
Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.
