WTI continues on downward trajectory near $83.20, focus on US data

• Crude oil prices lose ground due to the solid performance of the US Dollar.
• Improved US Treasury yields are providing support for the Greenback as it recovers from intraday losses.
• OPEC+ reaffirmed the joint commitment of Saudi Arabia and Russia to maintain their voluntary supply cut, but it failed to boost oil prices.

Western Texas Intermediate (WTI) oil price continues to lose ground for the third consecutive week, trading lower around $83.23 per barrel during the European trading session on Thursday. The drop in Crude oil prices could be attributed to the recent surge in the US Dollar (USD).

US Dollar Index (DXY) recovers its intraday losses, supported by the recovery in US bond yields. The DXY is currently trading around 106.70. Additionally, market turn bias toward the US Federal Reserve's (Fed) hawkish tone regarding interest rate trajectory, which could lend support to the Greenback.

The 10-year US Treasury yield recovers from its intraday losses and retraces the losses registered in the previous session, standing at 4.74% by the press time.

Traders will likely pay close attention to the upcoming Jobless Claims and Nonfarm Payrolls on Friday. Favorable figures in these reports could stimulate additional gains for the USD and increase volatility in the bond market.

On the other side, weekly US crude oil inventories reported by the US Energy Information Administration (EIA) showed a decline of 2.224 million barrels for the week ending September 29, compared to the previous drop of 2.17 million barrels. The market consensus had expected a smaller decline of 0.446 million barrels.

Additionally, API reported a larger decrease of 4.21 million barrels during the same period, swinging from the previous stockpile increase of 1.586M.

At the OPEC Joint Ministerial Monitoring Committee (JMMC) online meeting on Wednesday, the group kept the output policy unchanged. OPEC and its allies reiterated the joint Saudi-Russian vow to continue its voluntary supply cut of at least 1.3M barrels a day from the two nations' daily output through the end of the year.

Kuwait's oil minister Saad Al Barrak mentioned on Wednesday that balancing supply and demand are leading the oil market in a favorable direction, while Deputy Prime Minister of Russia, Alexander Novak also stated that joint supply cuts have helped to balance oil markets.