WTI extends rally, trades around $57 ahead of API data

• Upbeat market mood helps oil preserve its bullish momentum.
• OPEC's Barkindo says a deeper output cut is possible in December.
• Coming up: API's weekly crude oil stock report.

Crude oil started the week on a strong footing boosted by heightened hopes of the Organization of the Petroleum Exporting Countries (OPEC) introducing deeper output cuts in December and the barrel of West Texas Intermediate (WTI) gained 0.75% on Monday. With the market sentiment staying positive on Tuesday, the WTI stretched higher on Tuesday and was last seen trading near $57, adding 0.8% on a daily basis.

OPEC considering additional output cuts

While speaking at an event in Vienna on Tuesday, OPEC Secretary-General Mohammad Barkindo said additional supply reductions were going to be in question at the December meeting. "The numbers we are seeing now suggest 2020 may have upside potential," Barkindo added to provide a boost to crude oil prices.

Additionally, hopes of the US and China finalizing the phase-one of the trade deal and avoiding the planned tariff hike on Chinese imports in December seem to be helping crude oil preserve its momentum ahead of the American Petroleum Institute's (API) weekly crude oil stock report that will be released at 21:30 GMT later on Tuesday.

Technical levels to watch for