WTI attempts a tepid bounce near $ 58.50, will it last?

• Slowing demand concerns amid economic downturn negates OPEC cuts and US sanctions on Iran and Venezuela.
• OPEC+ said to plan JMMC meeting in Riyadh in May.
• Looking for a strong catalyst for the next move, US weekly crude stocks reports eyed.

WTI (oil futures on NYMEX) is looking to extend the tepid bounce above the 58.50 level, as the broad-based US dollar weakness offers some reprieve to the oil bulls. The greenback remains broadly sold-off into rising Fed pause expectations amid weakening US fundamentals and trade uncertainty.

Despite the latest leg up, markets remain skeptical about the recovery, as the recent headlines about the OPEC+ Joint Ministerial Monitoring Committee (JMMC)  meeting being pushed back to May continue to weigh on the investors‘ minds.

More so, mounting concerns over dwindling global economic growth and its impact on the demand for crude remains the main drag on the prices so far this Monday, outweighing the hopes of a potential supply deficit in Q1 amid deeper OPEC output cuts and the US sanctions on Iran and Venezuela.

All eyes now remain on the US fuel stocks reports due later this week on Tuesday and Wednesday for fresh direction on the prices. In the meantime, the USD dynamics and risk trends will continue to keep the traders engaged.

WTI Technical Levels