• WTI crude oil prints 1.0% intraday loss after a lackluster start to the week.
• Fears of slowing energy demand from China, firmer US Dollar weigh on Oil price.
• Risk catalysts eyed ahead of weekly stockpile data, US inflation for clear directions.

WTI crude oil takes offers to refresh the intraday low near $81.40 amid the early hours of Tuesday’s European session. In doing so, the black gold drops nearly 1.0% on a day after witnessing a lackluster start to the week.

That said, the energy benchmark’s latest losses could be linked to the market’s risk aversion, as well as economic and geopolitical fears surrounding China, one of the world’s biggest Oil consumers.

China’s headline Trade Balance improves in July but the details suggest deteriorating Imports and Exports for the said month, suggesting the economic challenges for the Dragon Nation which already suffers from geopolitical woes. That said, India bans drone makers from using Chinese equipment after stopping the imported laptops and computers previously.

Elsewhere, previous concerns suggesting the challenges for the hawkish central banks appear to fade of late, which in turn exerts downside pressure on the crude oil price, especially when the US Dollar remains firmer.

It’s worth noting that the US Dollar Index (DXY) manages to defend the week-start rebound above 102.00, close to 102.30 by the press time, even as the Federal Reserve (Fed) officials struggle to convince hawks. On Monday, Fed Governor Michelle Bowman and New York Fed President John C. Williams flashed mixed signals as the former cited the need for more interest rate hikes while Fed’s William showed indecision about the inflation conditions and prod the hawks.

While portraying the mood, S&P500 Futures prints mild losses around 4,530 as it retreats towards the monthly low marked the last Friday, reversing the first daily gain in five marked on Monday. That said, the US 10-year and two-year Treasury bond yields remain pressured around 4.06% and 4.76% by the press time.

Looking ahead, the US Trade Balance for June and the NFIB Business Optimism Index for July will precede the American Petroleum Institute’s (API) Weekly Crude Oil Stocks Change data to entertain intraday traders of the energy benchmark. However, Wednesday’s China Consumer Price Index (CPI) and Thursday’s US CPI are crucial for a clear guide.

Technical analysis

WTI crude oil justifies Monday’s bearish Doji candlestick to print the latest losses. However, a convergence of the 10-DMA and a six-week-old rising support line could challenge the Oil bears near $80.90.

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