WTI slumps below $58 ahead of API crude oil inventory data
- Saudi Arabia's output is expected to return to full capacity next week.
- Global growth worries weigh on crude oil prices this week.
- Coming up: API's weekly crude oil inventory report.
Crude oil prices started the week under pressure after the disappointing data published from the eurozone and Germany revived concerns over a global economic slowdown and its likely negative impact on the energy demand outlook. Additionally, reports of Saudi Arabia planning to bring its output back to full capacity as early as next week put additional weight on crude oil's shoulders.
Although the barrel of West Texas Intermediate (WTI) staged a technical rebound and closed the day virtually flat near mid-$58s, it lost its traction, once again, on Tuesday.as the data from Japan revealed that the business activity in the manufacturing sector contracted at a stronger pace than expected in September reminded investors of the dismal global growth outlook. As of writing, the WTI was trading at $57.93, losing 1.33% on a daily basis.
Later in the session, the American Petroleum Institute (API) will release its weekly crude oil inventory data. On Wednesday, the Energy Information Administration (EIA) will publish its oil stock report as well.
Technical levels to watch for