The oil price has dropped marginally
higher after stronger-than-expected China GDP growth
This led to overnight gains. Most of those gains were retracted by the close.
A key German investor survey has weighed down on crude
Edward Moya is a senior analyst at OANDA. He said in a recent market update that the outlook for the largest economy in the eurozone remains unimpressive.
Oil isn't receiving any good news and prices could continue to hover at $80 per barrel or even lower if sellers receive some assistance from a stronger dollar.
This week, we can expect to see more inventory drawdowns.
Crude -2.675mm (-500k exp)
Gasoline -1.00mm (-1.2mm exp)
Distillates -1.9mm (-900k exp)
The third crude draw in the last four. Cushing stocks saw another drop, while product inventories completed the overall decline in stock...
WTI hovered around $80.80 before the API data, and rose modestly after.
In the newsletter of Tuesday, Sevens Report Research analysts said that economic data would be a focus in the future. "A strong economic recovery in China as well as the avoidance hard landings in Europe or the U.S. is both priced into market. WTI trades with a $80 handle."
While the road to new WTI year-to date highs is narrow, they say it's "possible."
"The growth data for the U.S., Europe and China will have to be Goldilocks-like while data that is better than expected from China would be welcomed as a surprise."