WTI retreats from multi-month highs, trades near $41 ahead of API data

• WTI rose on easing US-China trade concerns on Tuesday.
• Positive risk sentiment helps oil preserve its gains.
• API's Weekly Crude Oil Stock will be released at 2030 GMT.

Crude oil prices started the week on strong footing and closed in the positive territory on Monday. Although the barrel of West Texas Intermediate (WTI) came under selling pressure during the Asian session on Tuesday, it reversed its course and climbed to its highest level since March 6th at $41.60. 

After staging a technical correction, the WTI returned to $41 area, where it was still up nearly 1% on a daily basis.

Eyes on weekly API data

White House trade adviser Peter Navarro on Monday said that the trade deal with China was "over" and triggered a flight to safety. However, US President Trump quickly responded by tweeting out the agreement was "fully intact" to allow risk-on flows to start dominating financial markets. 

The upsurge witnessed in global equity markets confirmed the upbeat market mood on Tuesday. Additionally, better-than-expected PMI readings from the euro area and the US revived hopes of a global economic recovery in the second half of the year.

Later in the day, the American Petroleum Institue will release the Weekly Crude Oil Stock data.

Technical levels to watch for