WTI retreats from five-day highs, clings to modest gains near $37.50
|- Crude oil prices gained traction on upbeat Chinese data.
- IEA expects oil demand recovery to decelerate in the remainder of 2020.
- The API will release its Weekly Crude Oil Stock data.
Crude oil prices turned north during the Asian session on Tuesday and the barrel of West Texas Intermediate (WTI) touched its highest level in five days at $38. However, the WTI struggled to preserve its bullish momentum and erased a portion of its daily gains. As of writing, the WTI was still up nearly 1% on the day at $37.55.
Chinese data boost sentiment on Tuesday
Earlier in the day, the data from China, the world's second-biggest oil consumer, showed that Industrial Production and Retail Sales in August expanded at a stronger pace than expected and revived hopes for a steady recovery.
However, crude oil continues to have a hard time staging a decisive rally as investors remain concerned about the energy demand outlook.
On Tuesday, the International Energy Agency (IEA) in its oil market report said that it expects the oil demand recovery to "decelerate markedly." On Monday, the Organization of the Petroleum Exporting Countries (OPEC) said that it revised the expectation for the decline in oil demand to 9.46 million barrels per day (bpd) from 9.06 million (BPD) in the previous report.
Later in the day, the American Petroleum Institute (API) will release its Weekly Crude Oil Stock data.
Technical levels to watch for
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.