WTI trades in tight range above $42 ahead of EIA data

• Crude oil prices stay little changed ahead of weekly EIA data.
• API data on Tuesday showed a draw of 4.2 million barrels in US oil stocks.
• OPEC+ ministerial panel meets to assess the compliance on output cuts.

Crude oil prices fluctuate in a tight range on Wednesday as investors stay on the sidelines while waiting for the US Energy Information Administration’s (EIA) weekly report and headlines coming out of the Organization of the Petroleum Exporting Countries (OPEC) meeting. As of writing, the barrel of West Texas Intermediate was virtually unchanged on a daily basis at $42.45.

Eyes on EIA report, OPEC JMMC meeting

On Tuesday, the data published by the American Petroleum Institue showed a decline of 4.2 million barrels in the US crude oil inventories. Later in the session, the EIA is expected to announce a 2.6 million draw in crude inventories. A bigger-than-expected decline could provide a boost to crude oil prices in the second half of the day.

Meanwhile, the OPEC Joint Ministerial Monitoring Committee (JMMC) meeting is taking place on Wednesday. Citing a draft document, Reuters reported on Tuesday that July compliance of OPEC+ with oil output cuts was expected to reach 97% including Mexico. However, the committee is said to have considered a scenario of substantial downside risk on demand if the coronavirus situation worsens.

Technical levels to watch for