Crude oil price has been reacting to the rising COVID-19 cases in equal measures to the ongoing optimism of the global economic recovery. Subsequently, it has remained range-bound ahead of the OPEC ministerial meeting scheduled for Wednesday. During the Joint Technical Committee meeting on Monday, the OPEC Secretary General, Mohammad Barkindo noted that despite the positive recovery signals, the oil-producing countries have to remain cautious about the situation.
About two weeks ago, OPEC rose its forecast for global oil demand for 2021. According to the alliance, the demand will heighten by 6.6%, which equates to 5.95 million bpd. Investors are now keen on the weekly US oil inventories data from API on Tuesday and EIA on Wednesday. Last week, crude oil price tumbled after both agencies indicated a rise in stockpiles.
Crude oil price has been wavering between 60.60 and 62.50 for a week now. On Monday, it dropped from an intraday high of 62.29 to 60.64 before recouping the losses later in the day. Earlier on Tuesday, WTI futures were up by 0.28% at 62.13.
Notably, 62 and 62.50 have been key resistance levels as the bulls lack enough momentum to push the crude oil price to the recent high of 64.35. On a 2-hour chart, it is trading above the 25 and 50-day exponential moving averages.
The prices are likely to remain within the current rectangular pattern as investors await further cues from the OPEC ministerial meeting on Wednesday. However, if the weekly US inventories are higher-than-expected, the bulls will lack enough energy to push the price past 63. On the flip side, a move below 60.64 will have the bears targeting the levels of 60 and 59.