WTI Fluctuates After Biggest Gain in a Week

WTI crude fell towards $95 a barrel after rising most in a week as the disappointing U.S. data brought back worries over lower demand. Price keeps swinging between gains and losses and further fluctuations are expected today with the upcoming economic data for Canada – CPI and Wholesale Sales. The USD/CAD correlation is strong and data ranging above or below expectations might weaken or strengthen the U.S. dollar, thus influencing WTI price.

According to a Bloomberg survey, oil prices may drop next week following concerns of weaker demand due to slower economic growth. Oil Movements, a tanker tracker, said in a report yesterday that OPEC will ship more oil during the four weeks ending June 1 – 23,87 million barrels a day, up from 23,65 in the previous four weeks, which ended May 4.

Ric Spooner, a chief market analyst at CMC Markets in Sydney said for Bloomberg: “The market will struggle to get through that $98 to $100 range without a significant event that causes some sort of supply shortage to emerge in the Middle East.”