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  • Supply dynamics continue to support crude oil prices.
  • US stimulus hopes revive optimism for a steady recovery in energy demand.
  • Investors await API’s Weekly Crude Oil Stock report.

After gaining more than 7% last week, crude oil prices staged a deep correction at the start of the week and the barrel of West Texas Intermediate (WTI) lost 2.4% on Monday.

WTI regains bullish momentum

Supported by a positive shift witnessed in the market mood on Tuesday, however, WTI reversed its direction and was last seen rising nearly 2% on a daily basis at $65.85.

Last week, the decision by the OPEC+ to keep the oil output steady through April fueled an impressive upsurge in oil prices.

Meanwhile, US Treasury Secretary Janet Yellen said on Monday that the coronavirus relief package is expected to trigger a “very strong” economic rebound in the US and revived hopes for a steady recovery in energy demand. Later in the week, the US House of Representatives is expected to vote on the $1.9 trillion stimulus package after the Senate approved it last week.

In the late American session on Tuesday, the American Petroleum Institute (API) will publish its Weekly Crude Oil Stock report ahead of the US Energy Information Administration’s Crude Oil Stocks Change data on Wednesday.

Technical levels to watch for