WTI hovers around the $77, fresh three-month highs

• WTI crude oil hovers around the $77 mark after hitting a nearly three-month high. 

• The US inflation data dragged the US Dollar lower across the board and helped boost WTI.

• The softer Chinese data raise concerns about the prospect of prolonged slower growth in China. 

• Market participants will focus on the key Chinese data next week.

Western Texas Intermediate (WTI), the US crude oil benchmark, hit a nearly three-month high, trading around the $77 mark so far this Friday. Oil price gains momentum backed by easing US inflation data and the possibility that the Federal Reserve (Fed) will end the hiking cycle.

The US Consumer Price Index (CPI) and the Producer Price Index (PPI) reports released earlier in the week dragged the US Dollar lower across the board, which helped boost WTI price. Markets now expect only one more rate hike this year due to easing inflationary pressure.

The uptick in oil prices is also supported by the supply cuts from Saudi Arabia and Russia. These major oil exporters extended their voluntary 1 million barrels per day oil supply cut for the second month until August. Additionally, the International Energy Agency (IEA) forecasted on Thursday that oil demand would reach a new high this year, albeit with broader economic challenges. 

Apart from this, the weaker Chinese consumer price inflation and the contraction in exports raise concerns about the prospect of a prolonged economic slowdown in China, the world's major oil importer. 

Looking ahead, oil traders will keep an eye on the headline between the US-China. The renewed trade tensions between these countries couldcap the further upside in oil prices. 

The Chinese data and the weaker US Dollar will continue to influence the WTI price in the next sessions. Market participants will focus on the Chinese’s Gross Domestic Product (GDP), Industrial Production and Retail Sales due for release next week. Oil traders will closely watch these data and find trading opportunities around WTI crude oil.