WTI holds above $80.00 per barrel as traders digest OPEC+ cuts, weak global PMIs

• On Tuesday, soft US economic data increased worries about a curtailed oil demand.
• US crude oil inventories withdrew more than 4 million barrels last week.
• WTI Price Analysis: The breaks of a 7-month-old downslope resistance trendline can pave the way for further gains.

Western Texas Intermediate (WTI) holds to its previous day’s gains, clings above the $80.00 per barrel psychological level as traders diggest over-the-weekend news of the OPEC planned cuts. WTI is trading at $80.96 PB, gains 0.71%.

Wall Street finished Tuesday’s session with losses after US jobs data revealed a deceleration in the labor market. The US JOLTs report showed a decrease in job openings of 632,000 from January’s 10.6 million to 9.9 million in February. Factory Orders plunged 0.7% MoM in February, slightly improving after January’s 2.1% plunge.

Given the backdrop and the recent release of global manufacturing PMIs weakening, it raised concerns about oil demand.

The commodities complex rose, led by Gold prices (XAU/USD) reaching new YTD highs at $2,025.17, while Silver (XAG/USD) broke the $25.00 mark.

Latest data revealed by the Organization of Petroleum Exporting Countries (OPEC), brought the total volume of cuts to 3.66 million BPD, including a 2 million barrel cut in October 2022, equal to about 3.7% of global demand.

In the meantime, US crude oil inventories withdrew more than 4 million barrels last week, according to sources citing American Petroleum Institute figures.

Furthermore, money market futures expect the US Federal Reserve to keep rates unchanged at 5.00%.

WTI Technical analysis

Following the OPEC+ crude oil output headline, WTI gapped over $6.00, breaking a 7-month-old downslope resistance trendline. That lifted WTIs towards $80.00 PB. Nevertheless, for a bullish continuation, buyers need to crack the YTD high at $81.75, which would clear the path to test the November 7 high at $93.73. On the flip side, any falls below $80.00 could send WTI’s diving towards $75.00.