WTI trims recovery gains below $ 46 mark, eyes on OPEC meet
- Hopes of global stimulus, OPEC cuts negate coronavirus risks.
- WTI: Is it a dead cat bounce from 15-month low?
- Focus shifts to US weekly supply reports, OPEC meeting.
WTI (oil futures on NYMEX) stalls its recovery momentum from a new 15-month low of $43.48 reached following a bearish opening gap triggered by awful Chinese Manufacturing PMI data released on Sunday.
The black gold quickly eroded $1 over the last hour to now trade near 45.70, as investors took profits off the table after the sharp reversal.
The higher-yielding oil staged a solid comeback and reached as high as 46.71, as the market mood was boosted by expectations of potential coordinated stimulus efforts by global central banks to fight the negative economic impact of the coronavirus outbreak.
The recovery in the barrel of WTI can be also attributed to the increased odds of oil output cuts by the OPEC and its allies (OPEC+) when they meet in Vienna on March, 5th and 6th. Russian President Vladimir Putin said Sunday that he’s ready to cooperate with OPEC+ partners, and believes the group can help keep long-term oil prices stable.
Despite the bounce, investors still remain wary amid looming coronavirus risks on the global economic growth and its impact on the demand for oil. The focus now shifts to the US weekly crude supply reports and OPEC+ meeting for the next direction in prices.
WTI technical levels to watch