WTI rebounds from weekly lows, around $52.30 ahead of API
- Prices of the WTI inch higher and revert Monday’s drop.
- US sanctions against Venezuela could be supporting prices.
- API weekly report to be released later in the NA session.
Prices of the barrel of the American reference for the sweet light crude oil are posting decent gains on Tuesday, retaking the $52.00 mark and above after bottoming out near $51.00 at the beginning of the week.
WTI looks to trade, data
WTI, in the meantime, keeps the multi-day sideline theme unchanged amidst alternating risk trends and omnipresent speculations over a global slowdown (particularly in China, the largest oil importer in the world) and the likeliness of a supply glut.
Furthermore, the recently imposed sanctions on Venezuelan oil exports by the Trump Administration appear to be supporting the up move in prices today, at the time when traders are looking to the upcoming US-China trade talks in Washington (Wednesday and Thursday).
Looking ahead, the American Petroleum Institute will publish its weekly report on US crude oil supplies later today ahead of the DoE’s official report on Wednesday.
What to look for around WTI
Crude oil prices keep navigating within a rangebound pattern today. In the meantime, the OPEC+ agreement to curb oil output appears supportive of higher prices, in collaboration with supply concerns stemming from Libya and sanctions against Venezuela and Iran. However, this bullish view is somewhat offset by the above mentioned possibility of a global slowdown, uncertainty around the US-China trade war and oversupply concerns in response to rising US oil production. Noteworthy, the Baltic Dry index – which gauges the costs of shipping raw materials – has retreated around 48% since last summer, somewhat reinforcing the idea of a global slowdown.
WTI significant levels
At the moment the barrel of WTI is advancing 0.63% at $52.22 facing the next hurdle at $54.22 (2019 high Jan.21) seconded by $54.48 (monthly high Dec.4) and finally $58.00 (high Nov.18 2018). On the other hand, a break below $51.13 (low Jan.28) would aim for $50.99 (21-day SMA) and then $50.34 (low Jan.14).