WTI crude prices dropped sharply as commercial crude inventories rose by 4.9 million barrels in the week through June 7, according to the American Petroleum Institute. WTI crude was down by 2.9 percent, at 51.97 a barrel on the day. Traders are now waiting for confirmation when the US Energy Information Administration releases official government figures today.
The US Consumer Price Index missed, with a rise of only 2.0 percent year-on-year on Core CPI and 0.1 percent on a monthly basis, as a rebound in the cost of food was offset by cheaper gasoline. The US Dollar Index dropped sharply after the announcement and was trading lower on the day at 96.57 levels.
White House Economic Advisor Larry Kudlow predicts the US economy will maintain 3 percent pace even without a China trade deal. Kudlow also acknowledged that he remains hopeful that negotiations between Beijing and the US can be repaired after stalling last month.
US Commerce Secretary Wilbur Ross said that President Trump and his Chinese counterpart Xi Jinping may decide to reopen trade talks, however, both will not strike a definitive deal to end the trade war between the US and China at an anticipated meeting late this month during the G20 Summit in Japan.