WTI Oil Price Declines Amidst China Import Data

During Monday's trading session, the WTI oil price commenced a decline, hovering around $77.35, following a bullish candle that countered three consecutive negative days. Market analysts suggest that the price may experience a pullback at the resistance and supply area indicated on the chart (highlighted in the red rectangle). This anticipated pullback is primarily driven by recent data indicating a notable decrease in oil imports in China.

According to reports, oil imports in China plummeted by approximately 5.7% to 10.8 million barrels per day (bpd) in the first two months of the year, compared to 11.44 million bpd recorded in December. This decline in oil imports has exerted downward pressure on the WTI oil price, which is currently trading around $77.00 per barrel during the Asian trading hours on Monday.

Given the prevailing market conditions, market participants are closely monitoring the potential for a pullback in the oil price, with a targeted level around $78, followed by a potential downward push towards the $76 area or lower.

Amidst these developments, the market is adopting a cautious stance ahead of the release of crucial economic data from the United States (US). Specifically, investors are eagerly awaiting the release of the Consumer Price Index (CPI) data scheduled for Tuesday. Additionally, Retail Sales and Producer Price Index (PPI) data, expected on Thursday, are anticipated to provide further insights into the US economic landscape. These data releases carry significant weight amidst growing expectations of a Federal Reserve (Fed) interest rate cut in June.

As the week progresses, market participants will continue to monitor these key economic indicators to gauge the overall health of the US economy and its potential implications for future monetary policy decisions by the Fed.