WTI extends rally to multi-week highs above $25 ahead of API data
|- WTI rises for sixth straight day on Tuesday.
- Oil demand is expected to recover on easing coronavirus restrictions.
- API's Weekly Crude Oil Stock data will be released at 2030 GMT.
Crude oil started the week on strong footing and the barrel of West Texas Intermediate (WTI) gained 19.3% on Monday before extending its rally on Tuesday. As of writing, the WTI is trading at its highest level in three weeks at $25.60, up 9% on a daily basis.
Easing demand concerns lift oil prices
Last week, major European countries started to ease coronavirus-related restrictions and opened parts of the economy. Moreover, several states in the United States, including California, announced that they are taking steps to allow people to go back to work.
These developments revived hopes of a strong recovery in the oil demand in the second half of the year and helped the WTI stretch higher following the sharp drop witnessed toward the end of April. However, some experts remain sceptical about a prolonged rebound in crude oil prices.
Commenting on the oil market dynamics, "oil demand will likely continue recovering in the second half of this year but consumer changes due to the virus may prevent a quick recovery to pre-crisis demand levels," said UBS analysts, per Reuters. "On the supply side, with the staggering production cuts winding down, the second half of 2020 will likely start with OPEC ramping up production by 2 million barrels per day."
Later in the day, investors will be watching the American Petroleum Institue's Weekly Crude Oil Stock data for fresh impetus.
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