WTI: Recovery falters below $63 mark ahead of OPEC+ meeting, API data
|- WTI retreats from multi-day highs, as India’s covid woes cap the recovery.
- OPEC+ JTC leaves oil demand growth forecast unchanged.
- DXY strength also weighs on oil, as focus shifts to API data, OPEC+ meeting.
WTI (futures on NYMEX) is paring back gains below $62.50 in the European session, reversing from four-day highs of $62.73 reached in early dealing.
The relentless rise in covid cases in India continues to threaten the prospects of economic recovery for the world’s third-largest oil importer, in turn, weighing on WTI prices.
Further, reports from Reuters that OPEC+ Joint Technical Committee (JTC) kept the global oil demand forecast unchanged following its meeting on Monday also helped limit the upside in the black gold.
Meanwhile, the risk-off action in the global stocks, in the face of covid concerns and nervousness ahead of Wednesday’s Fed decision, lifts the haven demand for the US dollar at the expense of the higher-yielding oil.
The WTI barrel staged a sharp recovery from two-day lows of $60.66 amid speculation that OPEC+ may alter its oil output policy in its monitoring meeting due later this Tuesday, in an effort to tackle the impact of India’s coronavirus crisis on fuel demand.
Attention now turns towards the OPEC+ meeting and American Petroleum Institute’s (API) weekly oil supply data for near-term trading opportunities. The broader market sentiment could also have a significant impact on the risk-sensitive oil.
WTI technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.