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.

Eren Sengezer FXStreet

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

WTI

Overview
Today last price	48.23
Today Daily Change	0.49
Today Daily Change %	1.03
Today daily open	47.74

Trends
Daily SMA20	47.04
Daily SMA50	43.3
Daily SMA100	42.04
Daily SMA200	37.51

Levels
Previous Daily High	49
Previous Daily Low	47.57
Previous Weekly High	49.26
Previous Weekly Low	46.19
Previous Monthly High	46.31
Previous Monthly Low	33.85
Daily Fibonacci 38.2%	48.12
Daily Fibonacci 61.8%	48.45
Daily Pivot Point S1	47.2
Daily Pivot Point S2	46.66
Daily Pivot Point S3	45.76
Daily Pivot Point R1	48.64
Daily Pivot Point R2	49.54
Daily Pivot Point R3	50.08

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.

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