WTI on the front foot after Chinese PMI, eyes on API data

WTI extends its pullback move from the 17-year low while trading near $21.00 ahead of the European session on Tuesday. China’s March month official PMIs accelerated the black gold’s recovery from the multi-year bottom whereas risk reset also offered additional help.

China’s official Manufacturing PMI crossed 45 forecast and 35.7 prior with 52.00 whereas the Non-Manufacturing gauge surged to 52.3 compared to 37.8 expected and 29.6 earlier reading.

Considering the risk headlines, US President Donald Trump’s ruling out of the nationwide lockdown and upbeat comments in the South China Morning Post (SCMP), stating that China has seemingly gotten the virus outbreak under control, favored the risk assets.

Even so, concerns about the spread of the deadly virus are still stronger to keep some of the Asian stocks under pressure while the US 10-year treasury yields take rounds to 0.70%.

Moving on, the American Petroleum Institute’s (API) weekly private inventory data, up for publishing around 20:30 GMT, prior -1.25M, will be important. Also on the oil traders’ radars will be the supply side news and virus updates.

It’s worth mentioning that US President Donald Trump talked to his Russian counterpart the previous day and both sides, as per Fox News, agreed on the importance of stability in global energy markets. However, no major solution to the Saudi-Russian rift has been suggested, which could keep weighing on the energy prices coupled with the pandemic.

Technical analysis

The bulls are less likely to return, even for short-term, unless prices cross the previous week high beyond $25.00.