- Catalysts questioning demand outlook trouble energy optimists.
- The US oil stocks data in the spotlight for now.
WTI is taking the rounds near $63.30 during early Tuesday. The energy benchmark failed to stretch its latest recovery on soft China PMI data.
Not only official purchasing manager index (PMI) but numbers from Caixin manufacturing PMI also lagged behind prior and consensus, which in-turn disappointed energy traders as China is one of the largest users of commodities.
Soft prints of the US Dollar (USD) on the back of not so welcome data joined hands with the threat from Iran that the US might have to bear the burden of latest efforts to cut their oil exports to zero.
Though, the gains weren’t much to counter Friday’s drop on news that the US President Donald Trump pushed OPEC members towards supply increase.
Having witnessed the market reaction to China data, energy traders may now turn towards the weekly release of the American Petroleum Institute (API) crude oil stock data. The inventories grew 6.9 million barrels during last-week that ended on April 19.
Also adding to the catalysts could be on-going trade discussions between the US and China together with the US-Iran cold war.
WTI Technical Analysis
While $62.80 and $62.50 are likely immediate supports for the oil benchmark, $61.80 and 200-day simple moving average (SMA) near $61.00 may try limiting additional downside.
Multiple highs between April 09 to 17 can cap immediate advances near $64.70, a break of which could push buyers to aim for $65.60 and $66.70 numbers to the north.
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