WTI within a tight range, clings to gains above $52.00
|- WTI regains some composure above the $52.00 mark.
- Prices struggle to advance further despite positive Chinese data.
- The API, EIA weekly reports come up next in the docket.
Prices of the WTI are up smalls at the beginning of the week, managing to regain ground lost following earlier lows in the $51.70 area per barrel.
WTI looks to risk trends, data
The West Texas Intermediate rebounds from earlier multi-day lows, although it keeps the trade within a narrow range on the back of the generalized cautious note among traders and the reduced activity due to the US holiday.
Crude oil prices remain subdued in spite of the positive set of results from the Chinese calendar earlier in the session. In fact, the economy expanded 2.3% in 2020, the Industrial Production rose 7.3% on a year to December and Retail Sales expanded 4.6% YoY in the same period.
Later in the week, the usual reports on US crude oil inventories by the API and the EIA are due on Tuesday and Wednesday, respectively. Further attention is expected to be on the appointment of Joe Biden as US President on Wednesday and any subsequent announcement regarding potential stimulus.
What to look for around WTI
Prices of the American reference for the sweet light crude oil managed to re-visit levels last seen in February 2020 in the vicinity of the $54.00 mark per barrel during last week. Past news regarding Saudi Arabia (unilateral oil output cut), the decision of the OPEC+ to refrain from increasing oil production and further US fiscal stimulus already anticipated by traders also collaborated with the upbeat mood surrounding the commodity. However, the relentless increase of coronavirus cases across the globe amidst the vaccine rollout coupled with fresh lockdown measures in many countries and a moderate drop in Chinese imports of crude oil appear to have tempered the upside in prices for the time being. Adding to the loss of positive momentum also emerges the noticeable rebound in the demand for the US dollar, which affects not only oil but also the rest of the risk-associated assets.
WTI significant levels
At the moment the barrel of WTI is up 0.35% at $52.30 and faces the next hurdle at $53.90 (2021 high Jan.13) seconded by $54.45 (monthly high Feb.20) and finally $59.61 (high Jan.20 2020). On the downside, a breach of $47.20 (monthly low Jan.4) would expose $46.18 (low Dec.23) ahead of $43.94 (monthly low Dec.2).
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