WTI recaptures $75 mark amid concerns over tighter oil market, EIA eyed

• WTI benefits from concerns over the tighter oil market.
• OPEC+ impasse, upbeat API data underpin WTI price.
• Focus shifts to covid updates, EIA data and Powell.

WTI (futures on Nymex) has stalled its overnight retreat from five-day tops of $75.52, as the bulls have jumped back on the bids above $75.

The US oil is attempting to find its feet above the latter once again, as the US dollar loses ground across the board, underpinning the USD-denominated WTI.

The post-US inflation rally in the dollar falters, as investors resorted to profit-taking ahead of Fed Chair Jerome Powell’s Congressional testimony. US inflation surged to the highest level in 13 years on Tuesday, reviving Fed’s tightening expectations.

Despite the risk-off mood, amid hawkish Fed’s expectations, oil price rallied 2% on Tuesday, as concerns over a tighter market amplified on the OPEC+ impasse and falling US crude and gasoline inventories.

Looking ahead, it remains to be seen if the black gold can hold the higher ground, as Delta covid variant concerns continue to ramp up and add to the risk-averse market conditions. Markets also await the US weekly crude stockpiles report due to be published by the Energy Information Administration (EIA) on Wednesday.

On Tuesday, the American Petroleum Institute (API) data showed the US  crude inventories fell by 4.1 million barrels for the week ended July 9.

WTI technical levels to consider