- WTI bulls take a breather after the 2% rise on Monday.
- Risk-on mood, optimism over OPEC+ output cuts deal underpin.
- Focus remains on the risk trends and API Crude Stocks data.
Following the solid comeback staged in the US last session, WTI (July futures on Nymex) bulls are taking a breather in early Asia, consolidating at higher levels above the 37 level.
The US oil is posting small gains around 37.20 and awaits fresh impetus from the sentiment on the global markets this Tuesday for fresh trading opportunities. Also, in focus remains the US weekly Crude Stocks data, which will be published by the American Petroleum Institute (API) later today at 2030 GMT.
Ahead of the API data, the critical US economic releases will be closely eyed for any impact on the broader market sentiment. The US Retail Sales and Fed Chair Powell’s testimony will stand out among other reports.
The sentiment around the black gold was mainly buoyed by the optimism over the adherence to the OPEC and its allies (OPEC+) output cuts deal by its members. The OPEC+ pact optimism offset worries over the second-wave of coronavirus and its impact on the global economic recovery.
The barrel of WTI also benefited from the return of risk appetite in the NY session after the US stocks rallied on the Fed announcement. Fed said that it would buy debt issued by individual corporations, another effort to keep credit flowing freely amid the virus pandemic.
The further upside, however, stalled, as the US-China tensions are back to the fore on reports that US Secretary of State Mike Pompeo is scheduled meet with China’s top foreign policy official on Tuesday.
WTI technical levels to watch
Further north, WTI faces immediate resistance at 37.64 (10-DMA) while the next one is aligned at 38.00 (round number). The 5-DMA at 37.00 should likely keep the buyers hopeful. A break below the last could open floors towards 35.95 (20-DMA) and 35.50 (psychological levels).
WTI additional levels
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