WTI extends sideways move below $60 amid a firmer USD
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- Crude oil prices continue to fluctuate in a tight range.
- WTI slips below $60 on a stronger US dollar.
- Rising coronavirus cases amid extended restrictions dimmed oil demand outlook.
Crude oil prices gained traction in the early European session. The pair opened on a flat note, near the $59.60 region, and was last seen trading at $59.97, up 0.44% on the day.
WTI has been moving back and forth between the $59.50 and $60.70 trading range, with no visible directional strength. The gloomy demand outlook, on behalf of demand concerns amid a spike in coronavirus cases in Europe and Asia, continued to haunt the black gold. The rising doubts over the economic rebound across regions after the extended lockdown in Japan, Australia and India hurt sentiment for crude.
Meanwhile, the decision by OPEC countries and their allies to raise supply gradually from May and the probability of higher supply from Iran amid efforts to ease US-Iran tensions also aided the upside pressure on the prices as supply would increase following the mentioned reasons.
The US dollar index (DXY) trades below the yearly highs of 93.47 and its remaining elevated guards against lower price levels for crude.
As for now, traders await the US CPI data later in the day, along with EIA’s inventory data on Wednesday, to gain fresh trading opportunities.
WTI technical levels
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