On May 8, WTI crude oil opened up 0.31% at 71.$5,140 a barrel, extending Friday's rally。

Recession worries drag WTI crude oil May economic data to good oil prices stabilized and rebounded.

This month, WTI crude oil prices have been volatile, with intraday prices on the verge of falling below their lowest level since December 2021。Some analysts point out that the risk of a U.S. recession has increased under the Fed's aggressive rate hike cycle。Although the market believes that the Fed will keep interest rates unchanged at its next policy meeting and start a rate cut cycle before the end of the year, negative investor sentiment has dragged down oil prices to some extent。In addition, the outbreak of the banking crisis has hit investor confidence to some extent.。

On the supply side, while OPEC + 's unexpected production cuts boosted oil prices in the early stages, markets are skeptical that Russia will comply with its production cut commitments。Earlier, the media broke that, according to cruise tracking data compiled by the statistics agency, Russia's crude oil shipments even surged by the day during the production cuts, reaching new highs。The effect of the production cut fell short of expectations and also hit WTI crude oil prices。

However, due to the recent better-than-expected U.S. economic data, WTI crude oil began to gradually stabilize and recover。On May 5, the U.S. non-farm payrolls released after the April quarter, recording 25.30,000, a much better-than-expected 180,000; the U.S. unemployment rate also fell in April from the previous month, recording 3.4%, indicating that the U.S. employment resilience is sufficient。

In addition, the same day the United States also announced the week to April 28 EIA crude oil inventories, data show that the inventory fell by 1.28 million barrels, but also better than expected。The data, released by the U.S. Energy Information Administration (EIA) and measured on a weekly basis, reflects changes in U.S. companies' commercial crude oil inventories.。In addition, U.S. crude oil drilling data also recorded a decline, in the short term positive oil prices。

On May 5, good news came again, with Helima Croft, head of commodity strategy at RBC Capital markets LLC, saying that OPEC + may choose to reduce crude oil supplies again when it meets in June to show its determination to stabilize oil markets.。

The analysis points out that although investor pessimism has subjectively pulled down future demand for crude oil, the actual demand for crude oil reflected in the economic data objectively reflects the fact that there is a real possibility of overshooting oil prices in the near future.。Ed Morse, global head of commodities research at Citigroup, said the sell-off far exceeded what the market balance showed.。

Analysts say oil prices may rebound this week or have a significant impact on crude oil in the second half of the year.

CMC Markets analyst Tina Teng said energy stocks made a comeback after Friday's strong US jobs data eased fears of an impending recession, reversing a sell-off earlier last week.。Crude oil prices may continue to rebound。

UBS also said oil consumption still looks healthy and could even rise further in the coming months.。UBS is understood to have recommended in a report last Thursday that customers increase their long positions in Brent crude oil。

Shell CEO Wael Sawan also said on Thursday that the oil spot market remained strong and supplies were "quite tight."。"

It is reported that this week will be a key week for the direction of oil prices。On Wednesday, the U.S. Energy Information Administration will release U.S. EIA crude oil inventories for the week to May 5.。A day later, OPEC will also release its monthly crude oil market report, which is likely to have a significant impact on crude oil market trends in the near term and throughout the second half of the year.。

WTI crude up 2 on day.30%, currently trading at 72.$93 / barrel, with a high probability of recording three consecutive positive。