- The WTI reversed its direction after rising earlier in the day.
- The UAE does not see the need for OPEC to review the production strategy.
- Investors await API weekly crude stock data.
After losing nearly 2% on Monday, crude oil prices rebounded 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 of $ 70.40.
With an eye toward API inventory data
The intense flight to safety amid fears about the Evergrande crisis weighing on the world economy made it difficult for crude oil to find demand earlier in the week. Although market sentiment showed signs of improvement during European business hours, the major Wall Street indices are struggling to erase Monday’s losses.
Meanwhile, United Arab Emirates (UAE) Energy Minister Suhail Mohamed Al Mazrouei said earlier in the day that they see no need for OPEC to change the course of the oil production plan for now. Furthermore, citing the TASS news agency, Reuters reported that Russia believes that global demand for oil may not recover to the levels seen before the pandemic.
Later in the session, the American Petroleum Institute (API) will release weekly crude oil stock data. During the Asian session, market participants will closely follow the policy announcements from the People’s Bank of China (PBoC).
Technical levels
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