WTI crude oil retreats from $71.00 amid mixed China catalysts, focus on OPEC, US PMIs

• WTI crude oil pares intraday gains after rising in the last four consecutive day.
• China Caixin Manufacturing PMI came in better than forecast in June but mixed US-China updates prod Oil buyers.
• Hopes of Saudi price cut contrasts with OPEC+ production cut concerns to trouble energy traders.
• OPEC updates, US PMIs and NFP will be crucial for clear directions.

WTI crude oil remains on the front foot for the fourth consecutive day, up 0.30% intraday near $70.65 amid early Monday. In doing so, the black gold cheer the better-than-forecast China PMI data amid hopes of higher Oil demand, versus supply crunch from the major energy producers.

China’s Caixin Manufacturing PMI eased to 50.5 for June, from 50.9 prior, but came in above forecasts of 50.2.

It’s worth noting that Saudi Arabia-inspired crude oil supply cuts contrast with the hopes of upbeat energy demand to prod the energy buyers. That said, Reuteres’ forecasts suggest no change in the Organization of the Petroleum Exporting Countries (OPEC) and Saudi Oil price with a floor of near $80.00.

Recently, Asia refiners expect Saudi Arabia to cut August crude prices, which in turn will result in higher energy demand amid a recent pullback in the US Dollar Index (DXY) and receding economic fears surrounding China and the US, namely the top oil consumers.

On a different page, mixed reactions to recently confirmed US Treasury Secretary Janet Yellen’s China visit, during July 06-09 period, test the Oil traders. While the news appears positive for the sentiment on the front, the details seem less impressive as US Treasury Secretary Yellen is likely to flag concerns about human rights abuses against the Uyghur Muslim minority, China's recent move to ban sales of Micron Technology memory chips, and moves by China against foreign due diligence and consulting firms, per Reuters.

It’s worth observing that the easing in the Fed’s favorite inflation numbers joins hawkish Fed talks to prod the WTI bulls of late.

Moving on, US ISM Manufacturing PMI for June will direct intraday moves but major attention will be given to this week’s OPEC+ meeting and the US employment report for a clear guide.

Technical analysis

A daily closing beyond the 21-DMA, around $70.35 at the latest, directs WTI crude oil buyers to aim for a five-week-old descending resistance line, at $71.90 by the press time.