The price of crude oil has responded to the rise in COVID-19 cases in proportions equal to the continued optimism of the global economic recovery. Subsequently, it remained linked to its range before the OPEC ministerial meeting scheduled for Wednesday. At Monday’s Joint Technical Committee meeting, OPEC Secretary General Mohammad Barkindo noted that despite positive signs of recovery, oil-producing countries must remain cautious about the situation.
About two weeks ago, OPEC increased its forecast for global oil demand for 2021. According to the alliance, demand will increase 6.6%, which equates to 5.95 million bpd. Investors are now interested in weekly US oil inventory data from API on Tuesday and EIA on Wednesday. Last week, the price of crude oil fell after both agencies indicated an increase in inventories.
The price of crude oil has been hovering between 60.60 and 62.50 for a week now. On Monday it went from an intraday high of 62.29 to 60.64 before recovering losses later in the day. Earlier on Tuesday, WTI futures were up 0.28% to 62.13.
Notably, 62 and 62.50 were key resistance levels as the bulls lack sufficient momentum to push the price of crude oil to the recent high of 64.35. On a 2 hour chart, it is trading above the 25 and 50 day exponential moving averages.
Prices are expected to remain in the current rectangular pattern as investors await further indices from the OPEC ministerial meeting on Wednesday. However, if weekly US stocks are higher than expected, the bulls will lack enough energy to push the price past 63. On the other hand, a move below 60.64 will bring the bears to target levels 60 and 59.
Crude Oil Price Chart
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