WTI loses traction near $74.40, eyes on supply disruptions in Libya and Nigeria

• WTI crude oil holds ground near the $74.40 mark in the early European morning. 
• Supply disruptions in Libya and Nigeria lift the price amid output cuts by Saudi Arabia and Russia.
• Fears of an economic slowdown in China could have a negative impact on the oil price.
• Market participants will take cues from the unexpected supply disruptions and the US data. 

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around the $74.40 mark so far this Monday. Investors will keep an eye on unexpected disruptions in Libya and Nigeria and developments surrounding the continued OPEC production cuts. The correction in WTI on Monday seems to be profit-taking by oil traders after WTI recorded its third-straight weekly gain.

However, cooling US inflation supported the uptick in oil prices last week. Market participants anticipate that the Federal Reserve (Fed) will be less aggressive in tightening monetary policy after an expected interest rates hike in the upcoming meeting on July 26. The International Energy Agency (IEA) also forecasted that oil demand would reach a new high this year, albeit with broader economic challenges.

That said, supply disruptions in key suppliers Libya and Nigeria lift the price in tandem with the longer-term output cuts set by the world's leading exporters, Saudi Arabia and Russia. 

On the other hand, fears of an economic slowdown in China could have a negative impact on the oil price. It’s worth noting that China is the world's second-biggest oil consumer. Market participants will take cues from the US data. China’s annual GDP disappointed expectations and arrived at 6.3% in the second quarter of 2023.

The Empire State Manufacturing Index and Retail Sales MoM from June will be due later this week. These data will play a key role in influencing the near-term US Dollar price dynamic and help determine the next direction for WTI prices.