WTI resumes the decline towards two-month lows ahead of API data

WTI (futures on Nymex) is paring back gains below $67, having stalled its tepid recovery from two-month lows of $65.61.

At the time of writing, the US oil trades modestly flat at $66.30, reversing a brief dip to daily lows of $66.14 after a fresh sell-wave engulfed the price from near the $67.30 region.

There appears to be no significant catalyst behind the latest leg down in the black gold. However, the downside remains cushioned (for now) amid a recovery in the risk sentiment. The European equities rebound after Monday’s rout while the S&P 500 futures also jump over 0.50% so far this session.

On Monday, WTI tumbled as much as 7.5% before recovering some ground to finish the day at $66.42, still losing 5% on the day. The deal reached amongst OPEC and its allies (OPEC+) to ramp up oil supply by 400K barrels per day (bpd) from August emerged as the key trigger for the sell-off.

Although the losses piled on amid a global rout, sparked by concerns over global economic recovery, in the wake of the rapid spread of the Delta coronavirus strain worldwide.

With the risk sentiment still leading the way for WTI traders, the weekly US crude stockpiles due to be published by the American Petroleum Institute (API) remain on their radars for fresh direction on prices.

WTI technical levels to consider

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