WTI retreats below $70.50 ahead of API data
- WTI reversed its direction after rising earlier in the day.
- UAE sees no need for OPEC to revise output strategy.
- Investors await API’s Weekly Crude Oil Stock data.
After losing nearly 2% on Monday, crude oil prices staged a rebound 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 at $70.40.
Eyes on API inventory data
The intense flight to safety amid fears over the Evergrande crisis weighing on the global economy made it difficult for crude oil to find demand at the start of the week. Although the market sentiment showed signs of improvement during the European trading hours, Wall Street’s main indexes are struggling to erase Monday’s losses.
In the meantime, the United Arab Emirates (UAE) Energy Minister Suhail Mohamed Al Mazrouei said earlier in the day that they don’t see the need for OPEC to change course on the oil output plan for now. Moreover, citing the TASS news agency, Reuters reported that Russia believes global oil demand may not recover to levels seen before the pandemic.
Later in the session, the American Petroleum Institute (API) will release the Weekly Crude Oil Stock data. During the Asian session, the People’s Bank of China’s (PBoC) policy announcements will be watched closely by market participants.