WTI extends the upside above $38.00 ahead of API, US elections

Prices of the WTI climb further and retake the $38.00 yardstick.
Risk-on sentiment anticipates a win by Joe Biden at Tuesday’s elections.
The API will report on US crude oil inventories later in the NA session.

Pablo Piovano FXStreet

Crude oil prices extend the optimism seen at the beginning of the week and regain the $38.00 mark per barrel and beyond on Tuesday.

WTI looks to US elections, data

Prices of the West Texas Intermediate hover around the area of 4-day highs past the $38.00 mark against the backdrop of a renewed and strong appetite for riskier assets ahead of the US elections.

In fact, commodities and the risk complex in general trade with decent gains amidst rising hopes that Joe Biden could become the next US President later this week. This scenario contemplates the likeliness of extra stimulus in the near term as well as a multilateral approach to the US-China trade conflict.

However, extra gains in crude oil or even a more serious bullish attempt look limited against the current backdrop of heightened concerns over the crude oil demand amidst the coronavirus pandemic and its impact on the world economy.

In the data space, the API will report its weekly measure of US crude oil stockpiles ahead of Wednesday’s report by the EIA and Friday’s weekly oil rig count by driller Baker Hughes.

WTI significant levels

At the moment the barrel of WTI is up 3.04% at $38.17 and faces the next up barrier at $39.97 (55-day SMA) followed by $40.30 (100-day SMA) and finally $41.87 (monthly high Oct.20). On the other hand, a breach of $33.67 (monthly low Nov.2) would expose $29.11 (monthly high Apr.3) and then $19.29 (monthly low Mar.30).

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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