WTI attracts buyers above the $81.30 mark, US PCE eyed

• WTI holds above $81.35 during Thursday’s early Asian session.
• The tighter oil supply caused by Saudi Arabia’s plan and crude oil inventories data lift WTI prices.
• Concerns about China’s economic woes could cap the upside for WTI demand.
• Traders will monitor the US Core Personal Consumption Expenditure Price Index (PCE), the weekly Jobless Claims, and the Chicago PMI.

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around the $81.35 mark so far on Thursday. WTI prices recover some lost ground due to the weakening of the US Dollar (USD). However, concerns about the Chinese economy might cap WTI’s upside.

About the data, the Energy Information Administration (EIA) revealed on Wednesday that US crude oil inventories declined by 10.584M barrels in the week ending August 25. The figure came in better than the expectation of a -3.267M barrels drop. On the same line, the American Petroleum Institute (API) reported that US crude oil inventories dropped by about 11.486M barrels compared to the previous week’s -2.418M barrels.

Higher WTI prices are also bolstered by Saudi Arabia’s ongoing voluntary production curbs. Saudi Arabia is expected to extend a voluntary oil cut of 1 million barrels per day for the third month in a row into October. That said, the tighter oil supply caused by Saudi Arabia’s plan and crude oil inventories data boost WTI prices.

On the other hand, concerns about China’s economic woes could cap the upside for WTI as China is the world’s largest oil importer. The Chinese Caixin Manufacturing PMI for August will be closely monitored by market participants. The weaker-than-anticipated data may exert additional selling pressure on WTI.

Moving on, oil traders will keep an eye on the US Core Personal Consumption Expenditure Price Index (PCE), the weekly Jobless Claims, and the Chicago PMI due later on Thursday. US Nonfarm Payrolls will be in the spotlight this week. The US economy is expected to create 170K jobs for August. 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.