WTI jumps over 1% to regain $49, API data in focus

• Catches fresh bids on a risk-on market profile, US-China trade optimism.
• Will it test 50.00 levels ahead of the US API crude inventories report?

WTI (oil futures on NYMEX) caught a fresh bid-wave in the European trading and broke the Asian consolidative phase to the upside, as the bulls fought back the 49 handle.

The renewed strength seen around the black gold is mainly driven by improved risk sentiment, fuelled by a rally in the European equities amid hopes of a US-China trade deal and advances in the Italian banking sector.

The latest reports that the senior US officials are planning to host China’s top trade negotiator later this month in Washington for further trade talks boosted the appetite for higher-yielding assets such as the equities, oil, Treasury yields etc.

Despite the bounce, the bulls appear to be struggling a bit amid looming oversupply concerns and broad-based US dollar strength, which could keep the USD-sensitive commodity in check.

Also, markets prefer to trade cautiously heading into the American Petroleum Institute’s (API) crude stockpiles data due on the cards later on Tuesday at 2130 GMT. On a drawdown in the US weekly crude supplies, the bulls will get a fresh impetus and prices could test the 50 handle.
WTI Technical Levels