- WTI rises for the fourth straight session on Monday.
- Progress over covid vaccine trials lifts market mood, oil.
- Bullish bets on US oil futures raised last week.
WTI (futures on NYMEX) trades better bid in Asia this Monday, close to the highest levels in eight days reached at $42.56.
Having booked a third consecutive weekly rise last week, the black gold is looking to build onto its last week’s surge, as the sentiment remains underpinned by the successful covid vaccine trials across the globe.
The UK is likely to give a green-light to Pfizer’s vaccine this week while a US official said that the vaccinations in the country will “hopefully” start in less than three weeks.
The vaccine optimism implies that life could return to normalcy in 2021, easing off global economic concerns while lifting the prospects for oil demand recovery. The upbeat market mood, also due to a likely Brexit deal this week, benefits the higher-yielding oil further.
Also, expectations that the OPEC and its allies (OPEC+) will keep the oil output curbs in place for longer collaborated with the upside in the US oil. The alliance meets on Nov. 30 and Dec. 1 and is considering options to delay output hike by at least three months from January.
In evidence of increased speculative interest in WTI, money managers raised their net long US crude futures and options positions in the week to Nov. 17 by 3,100 contracts to 277,080, the US Commodity Futures Trading Commission (CFTC) said on Friday, per Reuters.
However, fresh covid restrictions imposed in the American cities, amid the continued rise in new infections, could cap the gains in the WTI barrel. Looking ahead, the focus remains on the covid stats and US Markit Manufacturing PMIs for near-term trading opportunities in oil.
WTI technical levels
The next target for the bulls awaits at Wednesday’s high of $42.68, above which the $43 threshold will get tested. However, if the sellers fight back control, the US oil could drop back towards strong support near 41.95/90 region, where the falling trendline resistance now support coincides with the 50-hourly moving average (HMA).
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD keeps the red below 0.6400 as Middle East war fears mount
AUD/USD is keeping heavy losses below 0.6400, as risk-aversion persists following the news that Israel retaliated with missile strikes on a site in Iran. Fears of the Israel-Iran strife translating into a wider regional conflict are weighing on the higher-yielding Aussie Dollar.
USD/JPY recovers above 154.00 despite Israel-Iran escalation
USD/JPY is recovering ground above 154.00 after falling hard on confirmation of reports of an Israeli missile strike on Iran, implying that an open conflict is underway and could only spread into a wider Middle East war. Safe-haven Japanese Yen jumped, helped by BoJ Governor Ueda's comments.
Gold price pares gains below $2,400, geopolitical risks lend support
Gold price is paring gains to trade back below $2,400 early Friday, Iran's downplaying of Israel's attack has paused the Gold price rally but the upside remains supported amid mounting fears over a potential wider Middle East regional conflict.
WTI surges to $85.00 amid Israel-Iran tensions
Western Texas Intermediate, the US crude oil benchmark, is trading around $85.00 on Friday. The black gold gains traction on the day amid the escalating tension between Israel and Iran after a US official confirmed that Israeli missiles had hit a site in Iran.
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu, WIF token’s show of strength was not just influenced by Bitcoin price reclaiming above $63,000.