After surpassing $88.00 for the first time since November, the US benchmark for crude oil, WTI, is currently trading at $86.50, with gains slowing. The Saudi Arabian and Russian voluntary supply restrictions, which were extended for the remainder of 2023, are the main factors driving the rally. The monthly reviews of the reduction will bring Saudi Arabia’s crude production closer to 9 million barrels per day in October, November, and December.

The Chinese Services Purchasing Managers’ Index dropped to 51.8 on Tuesday, indicating a slowdown in August’s services activity. Given that China is the biggest oil importer in the world, this might restrict the WTI’s upside potential. Oil traders look for trading opportunities around the WTI price as they anticipate US ISM Services PMI and EIA Crude Oil Stocks Change data, which might have a substantial impact on the USD-denominated WTI price.

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