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WTI climbs back above $ 41 level before API data

  • WTI is looking to retest the monthly highs of $ 41.47.
  • The USD weakens as risk appetite sentiment improves ahead of the US fiscal stimulus deadline.
  • The OPEC + meeting offered no signs of further production cuts.

The WTI (NYMEX futures) is moving higher during the European session on Tuesday, as the bulls struggle to regain control and climb back above the $ 41 level.

Oil, the highest yielding asset, has again found demand near the region of $ 40.70 after the risk appetite feeling has improved amid a recovery in European stock markets and renewed hopes for US fiscal stimulus aid. European indices attempt to rebound as upbeat corporate earnings news counteracts concerns about locks triggered by the coronavirus.

In the meantime, the US dollar resumes its decline against its main rivalsas investors avoid safe haven amid ever narrowing differences between US authorities over the fiscal stimulus package. A weaker dollar generally makes oil, denominated in US dollars, more attractive to foreign buyers.

Monday, black gold corrected from monthly highs of $ 41.47 after the disappointment of the meeting of OPEC and its allies (OPEC +). OPEC + reinforced its commitment to supporting the oil market amid the prospect of declining demand, as coronavirus cases continue to rise globally. However, the alliance was unable to offer clues about further cuts in oil production.

The focus is now on the weekly data for US crude inventories. that the American Petroleum Institute (API) will publish later on Tuesday. Meanwhile, updates on the stimulus talks in the United States will also turn investors’ attention to swaying the dollar price action.

Credits: Forex Street

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