WTI erases large portion of early gains, trades below mid-$50s

• OPEC+ JTC to discuss output cuts on Wednesday.
• Positive market sentiment helps crude oil prices stay in positive territory.
• Coming up: API's Weekly Crude Oil Stock data.

The barrel of West Texas Intermediate staged a decisive rebound on Tuesday after slumping to its lowest level in more than a year at $49.64.

Eyes on OPEC

Heightened hopes of the OPEC and its allies, OPEC+, introducing deeper oil output cuts provided a boost to the WTI, which touched a fresh daily high of $51.53 earlier in the day. Citing OPEC officials, the Wall Street Journal on Tuesday reported that the OPEC+ was considering aggressive output cuts as the latest data revealed that the impact of the coronavirus on the oil demand was likely to be more severe than initially estimated.

Nevertheless, according to the latest headlines, OPEC's Joint Technical Committee (JTC) haven't discussed oil output cuts on the first day of its emergency meeting to cap crude oil's gains. The JTC is likely to make a recommendation on output cuts on Wednesday. As of writing, the WTI was trading at $50.30, still adding 0.79% on a daily basis.

Later in the day, the American Petroleum Institue (API) will release its Weekly Crude Oil Stock report.

Technical levels to watch for