ETO Markets Global Pulse: Oil Holds 97 as PPI Fuels Hike Bets

Market Review

According to ETO Markets monitoring, on May 13 (Wednesday), WTI crude closed lower at USD 101 per barrel, down 1.03% on the day, but stayed above the USD 100 level. Brent crude fell 1.73% to USD 105.55 per barrel, pressured by renewed US rate hike concerns, while investors also monitored progress in the US-China meeting.

On May 14 (Thursday) during Asian trading, WTI crude edged slightly higher and is currently trading near USD 97 per barrel. Short-term price action remains range-bound.

Global Headlines

OPEC Output Hits 1990 Low

OPECs monthly report showed that member output continued to fall in April. Daily production dropped by 1.727 million barrels to 18.98 million barrels, the lowest level since 1990. Saudi output fell to 6.32 million barrels per day, down 42% since February, contributing about half of the decline.

Iran Submits Strait Management Plan

Iran‘s National Security and Foreign Policy Committee said Tehran aims to use “smart management” of the Strait of Hormuz to turn its geographic position into a national leverage tool. The proposal has been finalized within the committee and submitted to Iran’s parliament for approval.

US PPI Hits 2022 High

US PPI rose 6% year-on-year and 1.4% month-on-month in April, both marking the highest increases since 2022. Energy and transport costs climbed together, while services inflation hit a four-year high. Markets are pricing around a 50% chance of one rate hike in 2026.

Senate Approves Warsh FED Chair

The US Senate formally approved Kevin Warsh as FED Chair. The Senate had earlier confirmed him as a FED governor for a 14-year term. Warsh will take office after White House procedures are completed, replacing Jerome Powell, whose chair term ends this Friday. Powell is expected to remain on the FED Board.

ETO Markets Analyst View (WTI Oil)

WTI is trading within a key range, with 100.50 acting as an important short-term pivot. If prices reclaim and hold above 100.50, upside may test 102.50 and extend toward 103.70.

If WTI remains below 100.50, the short-term structure may stay cautious. Downside could revisit 99.30 or even 97.80, with volatility likely near key support levels.

Current support and resistance zones remain sensitive, and profit-taking may emerge around these levels. The market continues to price US inflation, rate expectations, OPEC supply changes, and Irans Strait of Hormuz management proposal. Oil prices are likely to stay range-bound in the near term.

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