WTI crude oil defends four-day winning streak near $73.50 on US SPR refill concerns, US inflation eyed

• WTI bulls take a breather after four-day uptrend, sidelined of late.
• US SPI refill concerns, geopolitical woes join sluggish US Dollar to favor Oil buyers.
• Mixed sentiment, recession fears and US debt-ceiling jitters weigh on commodity price.
• US CPI, EIA inventories will be eyed for clear directions.

WTI crude oil remains static around mid-$73.00s amid the early hours of Wednesday’s Asian session, after portraying a four-day rebound from the lowest levels since December 2021.

In doing so, the black gold price portrays the market’s cautious mood ahead of the key US inflation data,  as well as mixed clues from the ongoing US debt-ceiling talks in the White House. However, talks of the US readiness to refill the US Strategic Petroleum Reserves (SPR) allow the WTI buyers to remain hopeful.

Reuters quotes a report by Bloomberg released on Tuesday afternoon that said that US President Joe Biden's administration plans to begin purchasing crude oil to fill strategic crude oil reserves after completing maintenance later this year. The news also added, “The start of summer season in the Northern Hemisphere and voluntary production cuts by members of the Organization of the Petroleum Exporting Countries (OPEC) are expected to bolster oil prices.”

Alternatively, the weekly prints of the American Petroleum Institute’s (API) Crude Oil Stock data and firmer US Dollar prod the energy benchmark prices as the key lure buyers. That said, the weekly API inventories for the period ended on May 05 rose to 3.618M versus -3.939M prior.

Elsewhere, US Senate Majority Leader Chuck Schumer conveyed the absence of progress in the key debt-ceiling talks at the White House while International Monetary Fund (IMF) Chief Economist Pierre-Olivier Gourinchas said on Tuesday, “We are a bit concerned about recent banking sector turbulence.” The same could be heard from the Fed's quarterly survey of bank loan officers, released on Monday.

While portraying the mood, the S&P 500 Futures remain sluggish whereas US Treasury bond yields grind higher and the US Dollar Index (DXY) struggles to extend the two-day rebound near 101.50.

Moving on, the US Consumer Price Index (CPI) for April and the official Weekly Crude Oil Stocks Change data from the US Energy Information Administration (EIA) will be crucial for clear directions.

Technical analysis

A daily closing beyond the three-week-old descending resistance line, now immediate support near $72.65, keeps WTI buyers hopeful.