WTI reverses the gains registered on Friday, trades below 76.50

• Crude oil receives downward pressure on concerns over contracted demand in the US and China.
• WTI prices were boosted by Iraq's support for oil cuts by OPEC+ on Friday.
• Baker Hughes US Oil Rig Count reveals a reduction in drilling rigs, marking the lowest point since January 2022.

West Texas Intermediate (WTI) Crude oil prices retrace the recent gains recorded on Friday, trading near 76.40 during the Asian trading hours on Monday. The worries about diminishing demand in the United States (US) and China deteriorate the market sentiment regarding the demand for Crude oil.

The recent data reflecting a decline in China's, the major oil importer, inflation for October could indeed cast a shadow on the global growth outlook. This has a direct impact on the demand for crude oil.

Oil prices enjoyed a nearly 2.0% gain last Friday, fueled by Iraq's endorsement of oil cuts by OPEC+. Traders are expressing concerns about potential supply disruptions stemming from the Israel-Hamas conflict.

However, crude oil prices experienced a downturn due to signals of increased supply. Industry data revealed a significant build in United States (US) crude inventories, countering the positive impact of Saudi Arabia and Russia's commitment to cut 1.2 million barrels in 2024.

The latest report from Baker Hughes on the US Oil Rig Count reveals a reduction in drilling rigs. The count dropped from 496 to 494, marking the lowest point since January 2022.

On the other side, the US Dollar (USD) seems to be in a bit of a conundrum, shrugging off the surprise hawkish remarks from Federal Reserve (Fed) Chair Jerome Powell. Despite Powell expressing concerns about the current policies not effectively curbing inflation to the coveted 2.0% target, the Greenback remains unresponsive.

The US Dollar Index (DXY) remains tepid despite the hawkish remarks from Federal Reserve (Fed) Chair Jerome Powell at the International Monetary Fund (IMF) event on Thursday. Additionally, the index is under pressure following the release of less-than-optimistic preliminary US Michigan Consumer Sentiment data on Friday, declining from 63.8 in the previous month to 60.4 in November.