- The WTI consolidates after a series of news that have put pressure on crude oil prices.
- A combination of risk aversion and industry data sends crude oil down more than 1%.
The oil WTI (West Texas Intermediate) fell 1.28% today, after the United States reported that April inflation fell for the tenth consecutive month. Other industry-related report also showed that US inventories are rising. WTI has oscillated between a high of $73.83 and a low of $71.86 bbls.
First, the US Consumer Price Index rose 4.9% annualized in April, below the consensus forecast for a 5% rise, which helped initially lift sentiment in financial markets. Core inflation, which excludes volatile food and fuel prices, rose to 5.5% from 5.6%, matching estimates. However, a bout of risk aversion occurred late in the day as data shows inflation remains well above the Federal Reserve’s target.
Increasingly, we expect the Federal Reserve to have to balance the risks between sticky inflation and slowing growth momentum and tightening financial conditions. We continue to expect last week’s move to be the last of this cycle, leaving the Fed on hold until the end of this year,” analysts at RBC Economics argued.
In another order of things, the United States suspended sales of its Strategic Petroleum Reserve, and crude oil inventories for the week showed an accumulation of 2.951 million compared to a reduction of -0.917 million.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
