WTI eases from daily highs, clings to modest gains around $62

• WTI trades in the green after suffering heavy losses on Friday.
• US House passed $1.9 trillion COVID-19 relief package.
• OPEC+ will be meeting later in the week to discuss output strategy.

The barrel of West Texas Intermediate (WTI) lost more than 3% on Friday but managed to end the week in the positive territory. On a monthly basis, WTI rose nearly 18% in February. Currently, WTI is up 0.8% on the day at $62.05.

Focus shifts to OPEC+ meeting

The US House of Representatives has approved President Joe Biden's $1.9 trillion coronavirus relief package and sent it to the Senate. This development provided a boost to market sentiment at the start of the week and helped crude oil prices gain traction.

On the other hand, the broad-based greenback strength on the back of rising US Treasury bond yields remains the main market theme at the start of the week and limits USD-denominated oil's upside.

Later in the week, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, will meet to discuss the output strategy. Markets expect to see a modest boost in the group's total output from April but Saudi Arabia's decision on the voluntary production reductions will be key. 

Moreover, the weekly crude oil inventory reports published by the American Petroleum Institue and the US Energy Information Administration (EIA) will be looked upon for fresh impetus.

Technical levels to watch for