WTI flirts with 8-month highs just below $46.00 ahead of EIA
|- Prices of the WTI extends the rally above the $45.00 mark.
- Optimism on higher demand boosts crude oil prices.
- The EIA’s weekly report on crude oil supplies comes up next.
The rally in crude oil prices remains well and sound for yet another session and pushes the WTI to levels well above the $45.00 mark per barrel on Wednesday.
WTI firmer ahead of weekly data
Prices of the barrel of the West Texas Intermediate advance to levels last seen in March beyond the $45.00 yardstick on the back of firm prospects of higher demand in the next months.
This view gathers extra pace following recent news that a coronavirus vaccine could be delivered in the near-term, underpinning the idea of a strong recovery in the global economy.
Also propping up the oil rally emerges the probability of further monetary/fiscal stimulus under the Biden presidency and rising bets that the OPEC+ could postpone its tapering for an extra three months.
Late on Tuesday, the API reported an unexpected 3.8 million barrels build during last week, adding to the previous’ week increase in supplies. Later on Wednesday, the EIA will release its report on inventories (0.768 million barrels prev.).
WTI significant levels
At the moment the barrel of WTI is up 1.17% at $45.31 and faces the next hurdle at $45.67 (monthly high Nov.25) seconded $48.39 (monthly high Mar.4) and finally $54.45 (monthly high Feb.20). On the downside, a breach of $43.04 (high Nov.11) would aim to $40.12 (weekly low Nov.16) and then $37.09 (low Nov.6).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.