WTI resumes slide to two-month lows ahead of API data

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  • WTI turns negative as the recovery falters above the $ 67 level.
  • US oil seeks support in the recovery of risk appetite during the European session.
  • WTI investors await API crude stock data for further signals.

The WTI (Nymex futures) is returning initial earnings and falls back below $ 67, after having halted its tepid recovery from two-month lows of $ 65.61.

At the time of writing, American oil moves slightly higher at $ 66.60, after a new selloff capped the price near the $ 67.30 region earlier in the day.

There does not appear to be any significant catalyst behind the latest downward move in black gold. However, the drop remains supported (for now) amid a recovery in risk sentiment. European equities are rebounding after Monday’s slide, while S&P 500 futures are also up more than 0.50% so far this session.

On Monday, WTI fell as much as 7.5% before regaining some ground to end the day at $ 66.42, still losing 5% on the day. The agreement reached between OPEC and its allies (OPEC +) to increase the supply of oil at 400 thousand barrels per day (bpd) from August it emerged as the key trigger for the sale.

The losses have added to concerns of a global economic recovery, following the rapid spread of the Delta strain of the coronavirus around the world.

With risk sentiment still in the heads of WTI investors, weekly US crude oil reserves data released by the American Petroleum Institute (API) could generate new momentum on prices.

WTI technical levels

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