WTI hits two-week highs to test $41 on Norwegian output knock out
|- WTI extends gains into fourth straight session.
- Risk-on mood, Norwegian oil output knock out underpin.
- US weekly crude inventories surge shrugged-off.
WTI (futures on NYMEX) is consolidating the uptick to two-week highs of $40.87 in the European session this Thursday, as the bulls fight back control amid a better market mood and reports of potential disruption of the Norwegian oil production.
At the press time, the US oil adds 1.30% to trade at $40.62, extending gains into the fourth straight session. The optimism over the US fiscal stimulus keeps the investors’ sentiment underpinned towards the higher-yielding assets such as oil.
Meanwhile, reports from operators and the Norwegian Oil and Gas Association (NOG) cite that the Norwegian labor strike could cut off almost a quarter of the country’s petroleum production by next week.
“Six offshore oil and gas fields shut down on Monday as Lederne ramped up its strike, cutting output capacity by 8%, or around 330,000 barrels of oil equivalent per day (boepd),” Reuters reported.
Ahead of the US open, the bulls take a breather, awaiting fresh cues from the sentiment on Wall Street and on the stimulus talks. Markets seem to have shrugged off the unexpected build in the US crude inventories, as reported by the Energy Information Administration (EIA) a day before.
WTI Technical levels
“During the quote’s break past-$40.95, the $41.00 round-figure and September 18 top close to $41.45 can entertain the oil buyers. On the contrary, a downside break of yesterday’s low of $39.48 can quickly direct WTI sellers toward a horizontal region between $38.70 and $38.80 that comprises multiple technical levels since September 04,” FXStreet’s Analyst Anil Panchal explained.
WTI Additional levels
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.