WTI consolidates losses around $62 ahead of EIA data

• Crude oil prices fell sharply on Tuesday, WTI lost 1.7%.
• Worsening demand outlook amid rising coronavirus cases weighs on WTI.
• Investors await EIA’s weekly Crude Oil Stocks Change data.

After starting the day on a firm footing and reaching fresh monthly highs on Tuesday, crude oil prices turned south in the second half of the day and the barrel of West Texas Intermediate (WTI) lost 1.7% to settle at $62.38.

With the bearish pressure remaining intact on Wednesday, WTI dropped to a daily low of $61.62 before going into a consolidation phase. As of writing, WTI was losing 0.65% on the day at $62.

Focus shifts to EIA report

Reports suggesting that the US House Judiciary Committee has passed a bill that would open OPEC to antitrust lawsuits over production cuts weighed heavily on crude oil prices.

Additionally, the sharp upsurge witnessed in coronavirus cases in India, the world’s third largest oil consumer behind the US and China, revived concerns over an uneven recovery in the global energy demand.

Meanwhile, the weekly data published by the American Petroleum Institue (API) showed on Tuesday that crude oil inventories in the US rose by 436,000 barrels. Later in the session, the US Energy Information Administration’s Crude Oil Stocks Change data for the week ending April 16 will be looked upon for fresh impetus.

Technical levels to watch for