WTI consolidates recovery from 17-year lows on $21 mark, eyes on API data
- WTI found reprieve after US-Russia agreed to talks to stabilize markets.
- Broad US dollar rebound keeps the oil-price recovery in check.
- Focus on coronavirus updates and API Crude Stocks data for fresh cues.
WTI (oil futures on NYMEX) is in a bullish phase of consolidation above the 21 handle so far this Tuesday, having stalled its recovery from a new 17-year low reached at 19.27 in the US last session.
The buyers faced some exhaustion near 21.80 region earlier today and since then they are gathering pace for the next push higher. At the time of writing, the black gold trades at 21.40, up 6.22% on a daily basis, with eyes set on the 22 mark.
Oil bulls found fresh signs of life and rebounded from multi-year troughs after the Kremlin said late Monday, US President Donald Trump and his Russian Counterpart Vladimir Putin to have their top energy officials discuss stabilizing oil markets, as cited by Reuters.
However, the upside attempts remain capped below the 22 threshold amid broad-based demand for the US dollar, traders rush to cover up the dollar shortage heading into the quarterly closing. A stronger greenback makes the USD-denominated oil expensive for foreign buyers.
Further, looming concerns over a global economic slowdown and oil demand outlook, in the face of the coronavirus outbreak, also remain a weight on the barrel of WTI.
Attention now turns towards the American Petroleum Institute’s (API) weekly US Crude Stocks Change data due later at 2030 GMT for a fresh trading impetus. Meanwhile, the virus-related updates will continue to drive the risk sentiment alongside the US dollar trades.
WTI technical levels to consider