WTI drops back towards $105 despite Libya outage, Shanghai reopening

• WTI price is on a corrective decline from three-week highs.
• WTI bulls ignore the Libyan fuel supply outage and Shanghai reopening news.
• OPEC+ produces 1.45 mil bpd below target last month, API data eyed.

WTI (NYMEX futures) is dropping over 1% so far this Tuesday, snapping a four-day uptrend, as bulls remain weighed down by the recent strength in the US dollar across its main peers.

Despite the latest pullback, the greenback continues to outperform its rivals amid increased odds of a double-dose Fed rate hike in May as well as in June. The US Treasury yields resume their bullish momentum, reviving the bids for the dollar while weighing on the USD-denominated oil.

The black gold fails to draw support from supply disruptions woes, emanating from Libya.  Libya's National Oil Corp closed its largest oil field as forces in the east expanded their blockade of the sector over a political standoff.

Adding to it, Reuters reported that OPEC and its allies (OPEC+) produced 1.45 mil bpd below target last month as Russian output was hit by sanctions.

Meanwhile, WTI bulls also ignored reports that Shanghai is preparing to ease covid lockdown restrictions, as factories reopen. Note that China is the world’s second-largest oil consumer and is currently battling the worst coronavirus outbreak since Wuhan.

Attention now turns towards the private sector weekly crude stocks change report due to be released by the American Petroleum Institute (API) later on Tuesday for fresh trading opportunities in WTI price.

WTI: Technical levels to consider