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  • WTI consolidates Monday’s gains, trades in a tight range around $58.
  • Investors await API’s Weekly Crude Oil Stock report. 

Crude oil prices rose for the sixth straight trading day on Monday and the barrel of West Texas Intermediate (WTI) closed above $58 for the first time in more than a year. Although the WTI preserved its bullish momentum and rose to $58.60 earlier in the day on Tuesday, it seems to have gone into a consolidation phase and was last seen posting small losses at $58.

Focus shifts to US oil inventory data

The acceleration of coronavirus vaccination, especially in the US, falling crude oil inventories and upbeat macroeconomic data releases provided a boost to oil prices last week. 

On Tuesday, the souring market mood is keeping the risk-sensitive WTI’s upside limited. Major European equity indexes are posting modest daily losses and the S&P 500 Futures are down 0.1% on the day. 

Meanwhile, a preliminary Reuters poll showed that crude oil and gasoline stockpiles probably increased last week, putting additional weight on the WTI’s shoulders. Later in the day, the American Petroleum Institue (API) will release its Weekly Crude Oil Stock report ahead of the US Energy Information Administration (EIA) Crude Oil Stocks Change data on Wednesday.

Technical levels to watch for