WTI recedes from fresh YTD tops beyond $53.00 ahead of API

• Prices of the WTI resume the upside above the $53.00 mark.
• New lockdown measures in China give support to crude prices.
• The API’s weekly report on US supplies comes up next.

Prices of the West Texas Intermediate leave behind Monday’s pullback and advance to new YTD peaks beyond the $53.00 mark per barrel on turnaround Tuesday.

WTI looks to data, risk appetite

The barrel of the American benchmark for the sweet light crude oil advances for the second week in a row so far on Tuesday, adding to last week’s more than 9% gains.

Recent news from Saudi Arabia regarding a unilateral and voluntary oil output cut of 1 mbpd for two months gave extra oxygen to the commodity in past sessions. Also collaborating with the upside, China reinstated lockdown measures in some cities, reigniting demand concerns in the oil industry.

Additionally, the ongoing vaccine rollout plus hopes of a strong recovery in the global economy continue to prop up the prospects of higher oil prices for the time being.

Later in the session, the focus of attention will be on the API’s weekly report on crude oil inventories ahead of the EIA’s report on Wednesday/

WTI significant levels

At the moment the barrel of WTI is gaining 1.11% at $52.74 and faces the next up barrier at $53.23 (2021 high Jan.12) seconded by $54.45 (monthly high Feb.20) and finally $59.61 (high Jan.20 2020). On the downside, a breach of $47.20 (monthly low Jan.4) would expose $46.18 (low Dec.23) ahead of $43.94 (monthly low Dec.2).