WTI loses momentum near $91.00 amid the fear of higher interest rate, eyes on US PCE, Chinese PMI

• WTI prices hover around $91.09 after retreating from Year-To-Date (YTD) highs.
• Real Gross Domestic Product (GDP) in the US expanded at an annual rate of 2.1% in Q2, as expected.
• Voluntary oil output cuts by Saudi Arabia and Russia might boost oil prices.
• Oil traders will closely monitor the US consumer inflation data, Chinese PMI data.

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $91.09 so far on Friday. WTI loses traction after retracing from a 12-month high of $93.98 as investors worry about the impact of higher interest rates on oil consumption. It's worth noting that higher interest rates raise borrowing costs, which can slow the economy and diminish oil demand.

On Thursday, the US Bureau of Economic Analysis (BEA) reported that Real Gross Domestic Product (GDP) in the US expanded at an annual rate of 2.1% in the second quarter (Q2), as expected. Market players will take cues from the US consumer inflation data for fresh impetus. The upbeat report might boost the US Dollar (USD) and exert some pressure on oil prices.

About the data, the American Petroleum Institute (API) reported on Wednesday that US crude oil inventories rose by 1.586M barrels for the week ending September 22 from the previous reading of 5.25M barrels drop. During the same period, EIA reported that crude oil stockpiles declined by 2.17M barrels compared to a drop of 2.135M in the previous week, while the market anticipated a drawdown of 0.32M barrels.

On the other hand, falling US oil stockpiles follow joint cutbacks of 1.3M barrels per day by Saudi Arabia and Russia, the world's two largest oil exporters, until the end of the year. Additionally, Russia stated that its ban on petroleum exports will remain in place until the domestic market stabilizes and noted that it has not discussed with OPEC+ a potential increase in supply to compensate for this export ban.

Oil traders will closely monitor the US Core Personal Consumption Expenditure (PCE) Price Index, the Fed's preferred measure of consumer inflation due later on Friday. The annual consumer inflation for August is expected to decline from 4.2% YoY to 3.9%. On Saturday, the Chinese Manufacturing PMI and Non-Manufacturing PMI will be released. These events could significantly impact the USD-denominated WTI price. Oil traders will take cues from the data and find trading opportunities around the WTI prices.