Oil Price Forecast: WTI sees a fresh spike above $25 ahead of EIA data

• WTI’s upside regains momentum in the European trades.
• Oil demand growth hopes amid easing lockdowns underpins.
• US-China tensions, US oil inventories and jobs data eyed.

WTI (June futures on Nymex) caught a fresh bid-wave and spiked to a fresh session high of $25.67. The bulls, however, failed to capitalize on the move higher and remained below the monthly high of $26.08 reached in Asia earlier this Wednesday.

At the press time, the US oil adds 2.65% to trade at 25.20, supported by the demand growth optimism amid re-opening of the major global economies following the coronavirus outbreak induced lockdowns. A pick up in business activity and lifting of the travel restrictions could likely boost the demand for oil and its products.

Further, the supply-side concerns also seem to have eased a bit after the OPEC+ output cuts took effect from May 1. This has also led to a turnaround in the fundamentals and rendered positive for oil prices.

Despite the renewed optimism, the bulls appear to lack vigor amid a higher-than-expected increase in the US crude inventories, as reported by the American Petroleum Institute (API) late Tuesday. The API data showed US crude stockpiles rose by 8.4 million barrels for the week ended May 1.

Also, simmering US-China tensions on the trade front keep the sentiment somewhat undermined around the higher-yielding oil. Attention now turns towards the US jobs data and official US weekly Crude Stocks Change data due to be published by the Energy Information Administration (EIA) later in the NA session.