WTI extends its upside below $ $82.00 area, eyes on US ADP

• WTI extends its upside for the fifth consecutive week, retreating from $82.12, the highest since April 14.
• US crude oil stocks decreased by around 15.4 million barrels in the week ending July 28.
• The escalating tensions between the US-China might exert some pressure on WTI prices.
• Market players will monitor the ADP Private Employment data ahead of Nonfarm Payrolls on Friday.

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around the $81.94 mark so far on Wednesday. WTI prices retreat from $82.12, the highest since April 14, supported by 

The American Petroleum Institute indicated on Tuesday that US crude oil stockpiles decreased by around 15.4 million barrels in the week ending July 28 after rising by 1,319 million barrels the previous week. The analysts forecast a decline of 1.37 million barrels.

WTI prices edge higher for the fifth consecutive month due to expectations that Saudi Arabia will prolong voluntary output cutbacks into September and tighten global supply. That said, Saudi Arabia is set to extend a voluntary oil production limit of 1 million barrels per day (bpd) until September. The Organisation of the Petroleum Exporting Countries (OPEC) crude oil output fell by 840,000 barrels per day (bpd) from June to July, to 27.34 million bpd, according to Reuters. 

That said, the escalating tensions between the US-China might exert some pressure on WTI prices. Chinese authorities announced on Monday restrictions on the export of certain drones and drone-related equipment to the United States, citing "national security and interests." The restriction will take effect on September 1, per the ministry of commerce. Notably, the United States is China's largest export market for drones. Additionally, US President Joe Biden plans to sign an executive order curbing US technology investments in China by mid-August.

Market participants will monitor ADP Private Employment, Weekly Jobless Claims, and Unit Labour Cost later this week. The week's key event is the Nonfarm Payrolls report, due on Friday. 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. Also, the headlines surrounding the development of more stimulus plans in China and the renewed tension between the US-China remain in focus.