WTI reclaims $70.50 on the back of API data
- WTI reversed its direction after rising earlier in the day.
- UAE sees no need for OPEC to revise output strategy.
- Investors await API's Weekly Crude Oil Stock data.
- Update: API Weekly Crude Oil Stock data showed that inventories plunged by 6.108M barrels.
Update:
As the Asian session begins, West Texas Intermediate (WTI) resumes its upward bias is trading at $70.77 flat, at the time of writing. The market mod is mixed, as US stocks split between winners and losers. The Dow Jones and the S&P 500 finished with losses of 0.15% and 0.08%, respectively. On the other hand, the Nasdaq and the Russell 2000 advanced 0.22% and 0.18% each.
The American Petroleum Institute (API) revealed that the Stocks of crude oil in the US tumbled by 6.108M barrels in the week ended on September 17, following a 5.437 M barrels drop in the previous week. WTI’s seesawed around $70.40 at the time of the release. Nevertheless, as traders dissected the report, oil prices jumped and finished the day around $70.82.
After losing nearly 2% on Monday, crude oil prices staged a rebound in the first half of the day on Tuesday with the barrel of West Texas Intermediate (WTI) climbing to a daily high of $71.45. However, WTI lost its traction in the second half of the day and was last seen posting small losses at $70.40.
Eyes on API inventory data
The intense flight to safety amid fears over the Evergrande crisis weighing on the global economy made it difficult for crude oil to find demand at the start of the week. Although the market sentiment showed signs of improvement during the European trading hours, Wall Street's main indexes are struggling to erase Monday's losses.
In the meantime, the United Arab Emirates (UAE) Energy Minister Suhail Mohamed Al Mazrouei said earlier in the day that they don't see the need for OPEC to change course on the oil output plan for now. Moreover, citing the TASS news agency, Reuters reported that Russia believes global oil demand may not recover to levels seen before the pandemic.
Later in the session, the American Petroleum Institute (API) will release the Weekly Crude Oil Stock data. During the Asian session, the People's Bank of China's (PBoC) policy announcements will be watched closely by market participants.
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.
