WTI eases to $40.88, down 0.10% on a day, while heading into the European open on Tuesday. The oil benchmark managed to flash gains for the last two days but a quiet Asian session seems to limit the moves off-late. As a result, traders eye the weekly release of private stockpile data from the American Petroleum Institute (API) for fresh impetus. Recovery in the US economy, coupled with hopes of the further stimulus from global policymakers, led-by America, seems to have offered the latest bids to the back gold. Also supporting the mood could be the month-end position adjustments.
A falling trend line from July 21, currently around $41.45, precedes the previous month’s top near $42.55 while challenging the bulls targeting February month bottom close to $44.00. On the contrary, $40.00 and 50-day SMA near $39.30 restricts the quote’s short-term downside. Moving on, any further fall in the API Weekly Crude Oil Stock, for the period ending on July 31, could help the energy benchmark to cross $41.00.