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
Reprinted from FXStreet,the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.