WTI Crude Oil Bounces Off Upward Trendline Support – What’s Next?
Arslan Butt • 3 min read
After falling consecutively for four sessions, WTI crude oil prices retreated on Tuesday and recovered almost all of its previous day’s losses amid weakness in the U.S. dollar and after OPEC downplayed India’s coronavirus situation. Crude oil edged higher on Tuesday after OPEC said that it hoped for recovery in demand if India comes out of its coronavirus situation by then. The sign of easing in the coronavirus crisis in India was supporting oil prices on Tuesday. The seven-day average of new daily cases was at a record high, and global health authorities were already warning that the country’s variant was an international concern. Pressure on Indian PM Narendra Modi is increasing to implement a national lockdown to contain the virus surge.
Despite all these negative developments in the third-largest oil-importing country, the Organization of Petroleum Exporting Countries stuck to the forecast of a solid recovery in global oil demand in the second half of 2021 as growth in China and the United States will counter the coronavirus crisis in India. OPEC stated in its monthly report that demand for crude oil will rise by 5.95 million barrels per day this year or 6.6% as it has forecast in the previous month. However, the report also warned against significant uncertainties mainly around the pandemic. This prediction from OPEC supported oil prices on Tuesday and pushed them towards $65 per barrel.