WTI looks to stabilize above $ 51, API data in focus

• On the defensive amid global financial market worries and doubts over the OPEC output cuts.
• But manages to find some support from a broadly weaker USD and positive European equities.
• All eyes on the US API crude stockpiles data for the next direction.

WTI (oil futures on NYMEX) is seen making minor recovery attempts in Tuesday’s European trading, having booked 3% losses a day before amid a broader market sell-off, fuelled by the European political tensions and global growth concerns.

Moreover, markets remained wary whether the OPEC output cuts announced last Friday would be able to support the prices and help stabilize the oil markets. This market scepticism continues to weigh down on the black.

 However, last hour, the barrel of WTI has managed to pick up fresh bids amid the ongoing weakness seen in the US dollar versus its main competitors, as the risk-sentiment improves that lifts the risk assets such as oil, stocks etc. at the expense of the safe-haven US dollar.

The immediate focus now remains on the US weekly crude stockpiles data published by the American Petroleum Institute (API) at 2130 GMT, which will offer a fresh direction to the prices.

WTI Technical Levels