WTI trades under pressure around $61 mark ahead of API data

• WTI fails to sustain at higher levels, drops back below $60.50.
• Higher yields limit the upside in oil, Saudi reports cushion the downside.
• All eyes on the US weekly crude stocks data from API for fresh impulse.

WTI  (futures on NYMEX) is extending its retreat from weekly highs of $62.25, now flirting with the $61 mark, as the sellers have regained control ahead of the US weekly crude stockpiles data.

The black gold ignores the upbeat market mood and heads south amid a broadly stronger US dollar. Meanwhile, the surging Treasury yields make the oil less attractive as an alternative higher-yielding asset.

The US oil clinched fresh weekly tops in early Asia this Tuesday after Reuters reported that “Saudi Arabia is prepared to support extending oil cuts by OPEC and allies into May and June and is also ready to extend its own voluntary cuts to boost oil prices amid a new wave of coronavirus lockdowns.”

On Monday, the WTI barrel fell on the news that Ever Given, a giant vessel, was finally freed, clearing the six-day blockage in the Suez Canal.

The bulls regained ground later in the American session following reports that Russia would support stable oil output from OPEC and its allies (OPEC+) in May, as the alliance meets Thursday to discuss its oil output policy.  

Next of note for the US oil remains the weekly crude stockpiles data due to be released by the American Petroleum Institute (API) later on Tuesday. Meanwhile, the black gold could track the US dollar price action and the broader market sentiment.

WTI: Technical levels