WTI remains confined in range around $82.30 ahead of EIA, US inflation data

• WTI consolidates in a tight range around $82.30 on Wednesday.
• The Chinese inflation data fuels concern over the economic slowdown in the nation.
• The EIA estimated Gross Domestic Product (GDP) to increase by 1.9% in 2023, up from 1.5% in the previous forecast.
• Market players will monitor the EIA Crude Oil Stocks Change, US inflation data.

Western Texas Intermediate (WTI), the US crude oil benchmark, oscillates in a narrow range between $82.20-$82.45 heading into the early European session on Wednesday. WTI prices struggle to gain as investors are concerned over China's sluggish demand for crude oil after the trade and inflation data.

The Chinese inflation data on Wednesday showed the Chinese Consumer Price Index (CPI) YoY fell 0.3% in July from 0% prior, and the market consensus anticipated a -0.4% decline. Meanwhile, the Producer Price Index (PPI) declined 4.4% YoY, compared to the 4.1% decrease YoY expected and a 5.4% drop prior.

Additionally, China's crude oil imports in July decreased 18.8% from the previous month to the lowest daily rate since January. This, in turn, exerts pressure on WTI prices as China is the major oil consumer in the world.

On the other hand, a monthly report from the U.S. Energy Information Administration (EIA) limits the downside in WTI prices. The EIA estimated Gross Domestic Product (GDP) will increase by 1.9% in 2023, up from 1.5% in the previous forecast. EIA added that crude prices have risen since June, owing mostly to prolonged voluntary limits in Saudi Arabian output as well as increased global demand.

Last week, Saudi Arabia announced it would extend its voluntary oil output cut of one million barrels per day (bpd) through September. In the meantime, Russia's oil exports will also decrease by 300,000 bps in September.

Oil traders will focus on the EIA Crude Oil Stocks Change for the week ending August 4, due on Wednesday. The key events to watch are the Consumer Price Index (CPI) and the Producer Price Index (PPI) later this week. 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 price.