WTI surpasses $86.40, eyes on US ISM Services PMI

Presently, the price of a particular type of oil known as WTI stands at approximately $86.40 on this Wednesday. It was a bit higher at $88.00 previously, but it has dipped a little since then. The recent surge in the price of WTI can be attributed to the decisions made by two significant countries, namely Saudi Arabia and Russia, who have indicated their intention to reduce their oil production. This announcement has had the effect of driving up the price of WTI in recent weeks.

Both Saudi Arabia and Russia are major players in the global oil market. They produce a lot of oil and sell it to various countries around the world. These countries have now stated that they will continue to decrease the amount of oil they produce until the end of 2023. This news caused the price of WTI to increase significantly over the past few weeks. However, it’s important to note that Saudi Arabia will still be producing around 9 million barrels of oil each day in the coming months. They will review this decision every month to determine whether they should produce more or less oil.

However, there is a factor that has prevented the price of WTI from rising too steeply. The economic data coming from China has not been very favorable. In August, businesses in China that provide services like car maintenance or house cleaning did not experience significant growth. In fact, their growth was the slowest in eight months, according to a report by a company called Caixin. This is noteworthy because China happens to be the largest buyer of oil in the world.

Looking ahead, traders are eagerly anticipating the release of two important reports. One is called the US ISM Services PMI, and the other is the EIA Crude Oil Stocks Change for the week ending September 1. These reports will provide more insights into the current oil supply and the health of the services sector in the United States. Since the price of WTI is denominated in US dollars, this information holds significant importance for those who trade in the oil market. They will be paying close attention to these reports to gain insights and potentially make decisions about buying or selling oil based on the information they contain.