WTI hovers around $73.60 despite a soft US Dollar

• WTI is set to end the week with substantial losses of 8.40%
• The jobs report showed a slowdown in wages, while the labor market remains resilient.
• WTI failed to capitalize on US Dollar weakness after the US Services PMI shrinkage

Western Texas Intermediate (WTI), the US crude oil benchmark, hovers at around $73.70s, almost flat, albeit the US Dollar (USD) weakened sharply due to mixed US economic data, though global recession concerns weighed on oil prices. At the time of writing, WTI exchanges hand at $73.71.

Wall Street is poised to end Friday’s session with hefty losses, boosted by disappointing PMIs. The ISM Services PMI plummeted to 49.6, below estimates of 55, on the lowest reading since May 2020. Meanwhile, the US economy added 223K people to its workforce, more than expected, the unemployment rate dropped, and wages aimed down, to 4.6% YoY, against estimates of 5%.

Consequently, the US Dollar turned south, plummeting below the 104.000 mark and down by 1.20%, though WTI failed to capitalize on that.

Back to oil-related news, Saudi Arabia lowered prices for Asia customers to their lowest since November 2021 as global pressures hit oil prices. Factors like China’s reopening and its Covid-19 outbreak keep investors uneasy as additional countries imposed restrictions on visitors from China.

WTI Key Technical Levels