WTI recovers above $48 ahead of API report
- WTI pushes higher after losing more than 1% on Monday.
- Investors remain optimistic about a steady recovery in energy demand.
- OPEC+ is expected to ramp up production at next week's meeting.
Crude oil prices fell on Monday and the barrel of West Texas Intermediate (WTI) lost 1.27% to close at $47.67. The risk-on market environment, however, helped the WTI, which was last seen rising 1.1% at $48.17, gain traction on Tuesday.
Focus shifts to OPEC+ meeting
Investors remain optimistic about a steady recovery in global energy demand heading into the new year amid the coronavirus vaccine rollout and the US stimulus deal. On Monday, Russian Energy Minister Alexander Novak said that they expect to see 5-6 million barrels per day (bpd) additional oil demand in 2021.
Meanwhile, OPEC and non-OPEC producers, the group known as OPEC+, will meet on January 4th to reassess the output strategy. Russia is advocating for a 500,000 bpd increase in production both in January and February, suggesting that oil's gains could remain limited in the first couple of months of 2021.
Later in the day, the American Petroleum Institue's (API) Weekly Crude Oil Stock Report will be looked upon for fresh impetus.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
