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  • WTI reverses the downside and trades above $51.00.
  • OPEC+ meet to assess the impact of coronavirus on the market.
  • API’ weekly report on supplies coming up next.

Prices of the American benchmark for the sweet light crude oil have regained the smile on Tuesday and are advancing beyond the $51.00 mark per barrel.

WTI rebounds from YTD lows near $49.70

Crude oil prices have managed to regain some buying attraction soon after hitting fresh 2020 lows in the $49.70 region during early trade, area last traded in January 2019.

Speculations around an extension of the ongoing OPEC+ output cut agreement and the likeliness of deeper cuts have been sustaining the rebound in prices and the better mood among traders, all after the cartel announced an urgent meeting later on Tuesday in Vienna to assess the impact on the global demand of the Wuhan coronavirus.

Additionally, prices of the WTI remain supported by the broad-based risk-on sentiment in response to somewhat mitigated concerns over the Chinese coronavirus and recent better-than-expected results of US fundamentals.

Later in the NA session, the American Petroleum Institute will publish its weekly report on US crude oil supplies (-4.3M barrels prev.) ahead of Wednesday’s report by the EIA and Friday’s US oil rig count by driller Baker Hughes.

What to look for around WTI

The outbreak of the Wuhan virus and its potential impact on Chinese/global growth have been heavily weighing on traders’ sentiment during past weeks, adding to the already rising concerns on the excess of crude oil supply in the markets and demand fears. On the supportive side for prices emerge the persistent supply disruptions in Libya, the still uncertain US-Iran scenario and rising likelihood that the OPEC+ extend the current deal or deepen the output cuts.

WTI significant levels

At the moment the barrel of WTI is gaining 2.19% at $50.99 and faces the next hurdle at $51.96 (weekly high Feb.3) seconded by $54.35 (weekly high Jan.29) and then $57.03 (200-day SMA). On the downside, a breach of $49.66 (2020 low Feb.4) would aim for $49.32 (monthly low Nov.29 2018) and finally $42.20 (2018 low Dec.24).