WTI: Recovery falters below $63 mark ahead of OPEC+ meeting, API data
- WTI retreats from multi-day highs, as India’s covid woes cap the recovery.
- OPEC+ JTC leaves oil demand growth forecast unchanged.
- DXY strength also weighs on oil, as focus shifts to API data, OPEC+ meeting.
WTI (futures on NYMEX) is paring back gains below $62.50 in the European session, reversing from four-day highs of $62.73 reached in early dealing.
The relentless rise in covid cases in India continues to threaten the prospects of economic recovery for the world’s third-largest oil importer, in turn, weighing on WTI prices.
Further, reports from Reuters that OPEC+ Joint Technical Committee (JTC) kept the global oil demand forecast unchanged following its meeting on Monday also helped limit the upside in the black gold.
Meanwhile, the risk-off action in the global stocks, in the face of covid concerns and nervousness ahead of Wednesday’s Fed decision, lifts the haven demand for the US dollar at the expense of the higher-yielding oil.
The WTI barrel staged a sharp recovery from two-day lows of $60.66 amid speculation that OPEC+ may alter its oil output policy in its monitoring meeting due later this Tuesday, in an effort to tackle the impact of India’s coronavirus crisis on fuel demand.
Attention now turns towards the OPEC+ meeting and American Petroleum Institute’s (API) weekly oil supply data for near-term trading opportunities. The broader market sentiment could also have a significant impact on the risk-sensitive oil.
WTI technical levels to watch