WTI trades with mild positive bias around $69.70-$69.75 area, lacks bullish conviction

• WTI attracts some buyers for the second straight day, though it lacks follow-through.
• Easing worries about a slowdown in demand from China lends support to the commodity.
• The prospects for rising supply from non-OPEC+ nations might cap gains for Oil prices. 

West Texas Intermediate (WTI) US Crude Oil prices edge higher for the second straight day on Monday and move away from over a one-week low, around the $68.40-$68.35 region touched on Friday. The commodity, however, lacks bullish conviction and trades around the $69.75-$69.80 area during the Asian session, up less than 0.50% for the day.

A weekend editorial from a media outlet affiliated with China's Ministry of Housing and Urban-Rural Development hinted at further measures to support the recovery of the property market. This helps ease worries about a slowdown in demand, which, along with concerns about supply disruptions stemming from tighter sanctions on Russia and Iran, acts as a tailwind for Crude Oil prices. 

Meanwhile, the US Dollar (USD) remains below a two-week high touched on Friday in the wake of the Personal Consumption Expenditure (PCE) Price Index report for November, which pointed to signs of inflation moderation. A softer buck tends to benefit USD-denominated commodities and turns out to be another factor supporting Crude Oil prices, though any meaningful gains seem elusive. 

The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, recently decided to postpone planned supply increases by three months until April and extend the full unwinding of cuts by a year until the end of 2026. Furthermore, the International Energy Agency highlighted increasing supply from non-OPEC+ nations, which, in turn, might cap Crude Oil prices. 

Hence, it will be prudent to wait for strong follow-through buying before positioning for any further intraday appreciating move. Trades now look forward to the release of the Conference Board's Consumer Confidence Index, which might influence the USD price dynamics and provide some impetus to Crude Oil prices.