WTI closes in on multi-month highs, settles below $42 ahead of API data

• Upbeat data from US help WTI push higher on Tuesday.
• Focus shifts to API's weekly Crude Oil Stock data.

Crude oil prices rose for the second straight day on Tuesday with the barrel of West Texas Intermediate (WTI) climbing to its highest level since July 23rd at $42.05. As of writing, the WTI was trading at $41.75, gaining 2.4% on a daily basis.

WTI gains traction on US data 

The upbeat macroeconomic data releases from the US helped the WTI push higher during the American session. The US Census Bureau reported that Factory Orders increased by 6.2% on a monthly basis in June and beat the market expectation of 5%. Additionally, the IBD/TIPP Economic Optimism Index improved from 44 to 46.8 and the ISM-NY Business Conditions Index jumped to 53.5 and surpassed analysts' estimate of 15.8 by a wide margin.

Moreover, heightened optimism on US lawmakers reaching an agreement on the next coronavirus stimulus bill also seems to be providing an additional boost to crude oil prices. 

Meanwhile, the number of confirmed daily coronavirus cases in the US over the weekend came in below 50,000 for the first time in nearly a month and revived expectations for a recovery in oil demand.

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

Technical levels to watch for