Oil prices trade higher on Tuesday, lifted by a bounce back in global stock markets that trailed sharp falls last week.
With markets returning normal, oil traders said attention was turning to inventory levels to measure crude supply levels.
The private American Petroleum Institute (API) is due to publish crude inventory estimates on Tuesday, while the government U.S. Energy Information Administration (EIA) is set to release its fuel storage and crude production data on Wednesday.
On the demand side, the Organization of the Petroleum Exporting Countries (OPEC) said on Monday it expected world oil demand to climb by 1.59 million barrels per day (bpd) this year, an increase of 60,000 bpd from the previous forecast, reaching 98.6 million bpd.
Crude oil 4hr chart has formed "Descending broadening wedge” pattern. The last session ended up consolidated near a slope trend line inside the channel. As per the technical aspects of the pattern, the market is expected to continue in bearish momentum. Once the same breaks below the slope trend line, sell signal will be confirmed. The downside rally could test all the way through $59-58(3789-3725) levels in the upcoming sessions. Alternatively, if the support slope trend line holds strong then the market might retest the same and turn bullish. The upside rally could test $61- 62(3918-3982) levels. Resistance holds at $62(3982) and support at $58(3725).
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