WTI comes under pressure and drops to $41.50

Prices of the WTI recede from earlier tops near $42.00.
Vaccine hopes continue to support the better prospects for 2021.
Traders now look to the OPEC+ meeting at end of November.

Pablo Piovano FXStreet

Crude oil prices face the re-emergence of sellers and recede to the $41.50 region in the second half of the week.

WTI: monthly gains limited just above $43.00

Prices of the barrel of the West Texas Intermediate navigate the middle of the daily range in the $41.50/60 band against the backdrop of alternating risk appetite trends.

In the meantime, the weekly recovery seems to have lost upside momentum in the $42.50 area (Wednesday), while traders keep the optimism intact on the back of the apparent imminence of an effective coronavirus vaccine.

In addition, the EIA said on Wednesday that US crude oil supplies increased by a smaller-than-expected 768K barrels during last week, which also supported the initial upside momentum in prices on Thursday.

The next big event in crude oil will be the OPEC+ meeting at the end of the month, with consensus among traders hoping for an extension of the ongoing oil output cuts for three to six months.

On Friday, and closing the weekly docket, driller Baker Hughes will publish its weekly report on US oil rig count.

WTI significant levels

At the moment the barrel of WTI is down 0.10% at $41.54 and a break below $40.12 (weekly low Nov.16) would aim to $39.49 (55-day SMA) and then $37.09 (low Nov.6). On the other hand, the next resistance is at $42.44 (weekly high Nov.18) seconded by $43.04 (monthly high Nov.10) and finally $43.75 (monthly high Aug.26).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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