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  • WTI attempts a recovery but not out of the woods yet.
  • Saudi Oil Minister’s comments, USD retreats support oil.
  • Coronavirus data and API crude stockpiles in focus.  

WTI (futures on NYMEX) is struggling to extend its recovery from three-week lows of $38.29 in Asia this Tuesday, as sellers continue to lurk around $38.80 levels amid the cautious market mood.

 Surging coronavirus cases and the reinforcement of stricter restrictions across Europe spooked investors sentiment while stoking fresh demand concerns for oil and its products on Monday. The US oil lost 3% and hit three-week lows just above the $38 mark.

Further, a rebound in Libya’s oil production raised fears over an increase in global supply, which exacerbated the pain in the black gold.

The Libyan state giant, National Oil Corp, ended its force majeure on exports from two key ports on Friday while noting that it production would reach 1 million barrels per day (bpd) over the next month.

So far this Tuesday, the WTI barrel reverses a part of the recent sell-off, helped by the upbeat comments from the Saudi Arabian Energy Minister Prince Abdulaziz bin Salman and broad-based US dollar retreat.  Saudi Oil Minister said that the worst is over for the oil market, at the virtual India Energy Forum by CERAWeek. 

Markets now look forward to the global coronavirus statistics and weekly US crude stockpiles data due to be published by the American Petroleum Institute (API) for fresh oil trades.  

WTI technical levels