Note

WTI recovers above $48 ahead of API report

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  • 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

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

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