WTI snaps three-day losing streak amid risk reset
- WTI pulls back from the multi-year low.
- Trade sentiment recovers off-late, Trump-Putin agreed on the importance of stability in energy markets.
- API data, virus headlines will keep the oil traders entertained.
While extending its pullback from the multi-year low, WTI takes the bids to $20.70 amid Tuesday’s Asian session. The energy benchmark recently benefited from the extended recovery in risk-tone whereas an absence of negative comments from the Trump-Putin call also helped the black gold.
US President Donald Trump and his Russian counterpart Vladimir Putin talked to each other on a call during the previous day. Following the call, Fox News came out with the statements, while relying on the White House spokesman Judd Deere, which said, “President Trump and President Putin agreed on the importance of stability in global energy markets.”
Other than the call between the key diplomats, comments from the US policymakers also recently helped the oil prices. In his coronavirus (COVID-19) Task Force Briefings, US President Trump ruled out calls of nationwide stay-at-home order whereas US Treasury Secretary Steve Mnuchin portrayed the speed delivering the aid payments.
Furthermore, the risk recovery remained on the cards considering the latest numbers from Italy and Spain that suggest the pandemic is losing strength. While portraying the risk-tone, the US 10-year treasury yields gain four basis points (bps) to 0.71% while the US stock futures and Asian equities flash mild profits by the press time.
Oil traders may now look forward to the weekly private inventory data from the American Petroleum Institute (API), prior -1.25M, whereas virus headlines and updates concerning the Saudi-Russia rift over the production could also provide near-term direction.
Technical analysis
Unless trading past the previous week’s top surrounding $25.20, WTI is less likely to recall even short-term buyers.