WTI crude oil is stabilized above $ 64 while operators prepare for OPEC+ decision

• The WTI crude is negotiated in a narrow range about $ 64.50, consolidating after a strong fall caused by the high fire between Iran and Israel.
• Geopolitical risk premiums are undone, with cautious operators before the OPEC+ meeting of July 6.
• The EIA report will be published later on Wednesday, the reduction of 3.5 million barrels last week was lower than expected.

The West Texas Intermediate (WTI) crude oil continues to negotiate in a narrow range on Wednesday, consolidating after a strong sale caused by the high fire between Iran and Israel, while geopolitical risk premiums get rid of and operators are repositioned before the next meeting of the organization of oil export countries and allies (OPEP+). Although the initial fall erased much of the profits promoted by the conflict, prices have stabilized above the mark of $ 64/barrel.

Despite the recent price action contained, the WTI is negotiated with a slightly positive tone during negotiation hours in the US, around $ 64.50 near the upper limit of its current range, with an increase of almost 0.90% in the day.

While the market found a temporary support about $ 64, the impulse is still contained after the US Energy Information Administration Report (EIA) last week, which revealed a lower than expected reduction of 3.5 million barrels in US crude oil inventories, which decreased the hopes of a more adjusted supply in the maximum demand of the summer. The attention now focuses on the next publication of the EIA that is expected later on Wednesday, which could offer new clues about the trends of US inventories, together with the very anticipated OPEC+ meeting of July 6 that could determine the short -term management of oil prices.

Adding pressure on prices, the data of the American Petroleum Institute (API) published late on Tuesday showed a surprise accumulation of 680,000 barrels in US crude oil inventories – a period in which inventories typically decrease due to the increase in demand for fuel in summer.

Meanwhile, all eyes are on the next OPEC+meeting, where the group is expected to announce its production strategy for August. The group is prepared to increase production by 411,000 barrels per day (BPD) in August, reflecting the increased increases for May, June and July. This would lead to the total increase in OPEC+ production by 2025 to 1.78 million BPD, equivalent to more than 1.5% of world oil demand. Although the comments of the main producers, including Saudi and Russia Arabia, have reflected optimism about a stronger demand in summer, concerns about global commercial conditions persist, particularly uncertainty around possible new US tariffs after the deadline of July 9, which continues to cloud the demand perspectives.

On the demand side, China’s favorable economic data offered a ray of optimism. A private sector survey showed that the manufacturing PMI Caixin rose to 50.4 in June, marking a return to expansion territory since March. The improvement was driven by an increase in new orders and production, suggesting that the manufacturing activity is recovering impulse, which could increase the demand for oil of the second largest importer of crude oil in the world.

However, the weakest data in the US labor market moderated optimism. New figures from the ADP employment change report published Wednesday showed that the US private sector unexpectedly lost 33,000 jobs in June, marking the first monthly fall in more than a year. This was a big surprise, since the markets expected an increase of around 95,000 jobs.

In view of the future, the US Non -Agricultural Payroll (NFP) report that will be published on Thursday will be closely followed to confirm a broader slowdown in the labor market. After the weak impression of ADP, any missing surprise in the NFP could further decrease the prospects for crude oil and feed the speculation around a more moderate position of the Federal Reserve (Fed).