WTI corrects to near $82.30 ahead of US economy and weekly Oil inventory data

• WTI drops from two-month high of $83.77 as risks to Oil supply due to disruption in facilities at Gulf of Mexico eases.
• The US API reported a big drawdown in Oil inventories for the week ending June 28.
• Investors await the US NFP data for fresh guidance on the Fed’s interest rates.

West Texas Intermediate (WTI), futures on NYMEX, correct to near $82.30 from a two-month high of $83.77 in Wednesday’s European session. The Oil price comes under pressure after a sharp rally as supply concerns over Hurricane Beryl reaching the Gulf of Mexico ease. However, the near-term outlook appears to be firm due to a larger-than-expected drawdown in the United States (US) American Petroleum Institute (API) crude oil inventories for the week ending June 28.

The latest weather forecast from the US National Hurricane Center indicated that Hurricane Beryl would weaken into a tropical storm. Earlier, it was expected that it would disrupt oil production facilities in the Gulf of Mexico.

Meanwhile, the US API reported that oil stockpiles declined by 9.163 million barrels after a small build-up of 0.91 million barrels last week.

In Wednesday’s session, investors will focus on the crude oil inventories data from the US Energy Information Administration (EIA), which will be published at 14:30 GMT. The agency is expected to report a small drawdown in oil inventories by 0.15 million barrels.

On the economic front, investors await the US Nonfarm Payrolls (NFP) data for June, which will be published on Friday. The Employment data will indicate the labor demand and the wage growth, which will influence market expectations for Federal Reserve (Fed) to begin reducing interest rates from the September meeting. Higher expectations for early Fed rate cuts are favorable for the Oil price.