WTI prints a multi-week high above $79.00

Western Texas Intermediate (WTI) resumed its uptrend after a report by the Wall Street Journal (WSJ) spurred a fall of 3% on speculations that one of the largest oil producers worldwide threatened to leave the Organization of the Petroleum Exporting Countries (OPEC). However, those rumors were dismissed, according to Reuters. At the time of writing, WTI is trading at $79.06, up 2.50%.

During the Wall Street opening, rumors that the United Arabe Emirates (UAE) discussed leaving OPEC as the country has been seeking authorization to increase its crude output. Consequently, WTI fell 3% towards three-day lows before recovering some ground.

Oil prices have been bolstered throughout the week by a shortage of crude oil, on speculations that China’s reopening would increase demand for crude. Additionally, business activity in China gathered momentum with Caixin’s Manufacturing and Services PMI’s re-entering expansionary territory.

WTI prices shrugged off an increase in US stockpiles for the tenth straight week, as record exports of US crude made for a smaller increase than in recent weeks.

Meanwhile, US data revealed in the week showed that business activity in the manufacturing and services segment improved to expansionary territory. Although it’s positive news for growth, Federal Reserve officials would continue to tighten monetary conditions to curb inflation to its 2% target.

In the meantime, the US Dollar Index, a gauge of the buck’s value against a basket of peers, is retreating 0.16%, down at 104.752, a tailwind for the US dollar-denominated oil price.

WTI Technical levels