WTI clings to recovery gains near $34 ahead of API data
- Russia leaves the door open for OPEC+ cooperation.
- Saudi Arabia doesn't see the need for OPEC+ meeting in May or June.
- Coming up: API Weekly Crude Oil Stock data from US.
The barrel of West Texas Intermediate (WTI) closed the first day of the week more than 27% lower after Saudi Arabia and Russia have kicked start a price war in the oil market after failing to reach an agreement on production cuts last week.
Following Monday's crash, the WTI staged a technical rebound and erased a portion of its recent losses. As of writing, the WTI was trading near $34, adding 12.5% on a daily basis.
Oil price war
In addition to the correctional rally, revived hopes of OPEC+ trying to find a way to come to terms provided a boost to crude oil prices on Tuesday. Russia's Energy Minister Alexander Novak said that the door for an OPEC+ cooperation was not closed but added that the Russian oil market was still competitive despite falling oil prices.
On the other hand, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman argued that there was no wisdom to hold another OPEC+ meeting in May or June. “In a free market, every oil producer needs to demonstrate its competitiveness, preserve and increase its market share," he added.
Later in the session, the American Petroleum Institue (API) will publish its Weekly Crude Oil Stock data.
Technical levels to watch for