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.

Pablo Piovano FXStreet

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).

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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