WTI dips below the $80.00 mark amid the fear of higher interest rates, China’s economic woes

• WTI eases from $81.65 and currently trades around $79.98, losing 0.20% on the day. 
• The economic recovery in China has lost momentum, putting pressure on authorities to release more fiscal stimulus plans.
• The possible additional rate rises by the Federal Reserve (Fed) might exert pressure on WTI price.
• Oil traders will monitor Crude oil data, the Jackson Hole event.

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around the $79.98 mark so far on Tuesday. WTI prices remains under pressure for the second consecutive day as the prospects for Chinese demand diminish and the odds for an additional rate hike by Federal Reserve (Fed) increased.

On Monday, the People's Bank of China (PBoC) slashed its Loan Prime Rate (LPR) for one year by a smaller margin than anticipated. Chinese central bank decided to cut the one-year Loan Prime Rate (LPR) by 10 basis points (bps) to 3.45% from 3.55% and maintained the five-year LPR unchanged at 4.2%.

The economic recovery in China has lost momentum and put pressure on authorities to release more fiscal stimulus plans. However, the lack of stimulus measures might exert pressure on WTI prices as China is the major oil consumer in the world.

Moreover, despite the strong labor statistics and lower inflation data, market participants are increasing their bets on additional rate rises by the Fed. Investors will look to Friday's speech by Fed Chairman Jerome Powell for direction and perhaps insight into the state of the economy. However, rising interest rates increase borrowing costs, which may dampen economic activity and hence reduce oil demand.

Meanwhile, higher oil prices have been supported by tighter supply caused by Saudi Arabia's ongoing voluntary production curbs. According to Reuters, Saudi Arabia has said that it would maintain output at roughly 9 million barrels per day through September, a decrease of around 1 million barrels from August levels.

Moving on, oil traders will keep an eye on the American Petroleum Institute's (API) Weekly Crude Oil Stock and EIA Crude Oil Stocks Change for the week ending August 18. Also, S&P Global PMIs and Federal Reserve (Fed) Chair Jerome Powell’s speech at the Jackson Hole Symposium on Friday will be the highlight of the 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.