WTI rebounds above $67 as focus shifts to API data

• WTI is edging higher in the second half of the day on Tuesday.
• Improving market mood seems to be helping oil gain traction.
• Investors await API's Weekly Crude Oil Stock data.

Crude oil prices came under strong heavy selling pressure at the start of the week and the barrel of West Texas Intermediate (WTI) lost nearly 7% on Monday. After extending its slide to its lowest level in nearly three months at $65.06 on Tuesday, WTI staged a rebound in the American session and was last seen gaining 1% at $67.20.

Eyes on weekly API inventory data

Worsening demand outlook amid rising number of confirmed coronavirus Delta variants alongside increasing OPEC+ oil output following the agreement between the United Arab Emirates and Saudi Arabia hurt oil prices on Monday. 

In the absence of a significant fundamental development that could be seen as a positive driver for crude oil prices, the latest recovery seems to be a product of bargain shopping. Additionally, improving market mood is also helping the risk-sensitive oil attract investors. 

Reflecting the positive shift in sentiment on Tuesday, the S&P 500 Index, which lost 1.6% on Monday, is currently up 1.65% at 4,329. 

Later in the session, the American Petroleum Institute (API) will release its Weekly Crude Oil Stock data. 

Technical levels to watch for