WTI rebounds above $34 in quiet session

• WTI gains traction after moving sideways near $33.50 during European session.
• Heightened hopes of energy demand recovery help crude oil remain bullish.

Crude oil started the new week under modest selling pressure and the barrel of West Texas Intermediate (WTI) dropped to a daily low of $32.46 during the early Asian session. However, the WTI easily recovered its losses and went into a consolidation phase near $33.50.

Easing energy demand concerns support oil

In the second half of the day, crude oil prices gained traction on heightened hopes of a recovery in global energy demand and the WTI rose above $34. Nevertheless, thin trading conditions seems to be making it difficult for WTI, which was last up 0.4% on the day at $33.70, to preserve its momentum.

Earlier in the day, Russia’s state-run news outlet RIA Novosti reported that the Russian energy ministry was expecting the global oil market to reach its balance in June or July. Additionally, the report further noted that Russia was in full compliance of agreed OPEC+ output cuts.

Moreover, India’s oil and steel minister Dharmendra Pradhan told CNBC TV18 that they were expecting India’s fuel demand to reach June 2019 levels next month.

Due to the Memorial Day holiday in the US on Monday, the weekly API and EIA crude oil inventory data will be published on Wednesday and Thursday, respectively. 

Technical levels to watch for