WTI jumps 1% to test $46 amid vaccine-led demand recovery hopes

Upside appears more compelling amid hopes of faster demand recovery.
Coronavirus vaccine-driven optimism underpins ahead of US FDA seal.
Rising US crude supplies remain a cause for concern.

Dhwani Mehta FXStreet

Fresh bids emerged just above the midpoint of the 45 level, allowing a bounce in WTI (futures on NYMEX) to test the 46 mark, as the optimism over the coronavirus vaccine continues to keep the buyers hopeful.

The oil bulls continue to cheer the narrative that the coronavirus vaccine rollout would help quicken global economic rebound, which, in turn, would boost the prospects of oil demand recovery.

Globally, vaccinations have started in the UK while Canada approved the inoculation on Wednesday. The US Food and Drug Administration (FDA) is set to approve Pfizer’s covid vaccine later in the day.

Further, an explosion at an Iraqi oilfield also offered support to the WTI barrel. Two wells at a small field were set ablaze by explosives on Wednesday, Reuters reported, although the production remained unaffected.

Despite the bounce, markets remain wary amid rising US crude supplies, especially after the Energy Information Administration’s (EIA) latest weekly report showed a 15.2-million-barrel build in crude oil inventories.

Attention also turns towards the critical US CPI and Jobless Claims data for fresh cues on dollar-sensitive oil.

WTI technical levels

Wednesday’s doji candlestick above the 12-day-old support line suggests a gradual recovery of oil prices eyeing the monthly high of $46.75. Meanwhile, any downside past-$45.17, comprising the stated support line, will attack the monthly low near $44.00,” FXStreet’s Anil Panchal explains.

WTI additional levels

WTI

Overview
Today last price	45.98
Today Daily Change	0.32
Today Daily Change %	0.70
Today daily open	45.75

Trends
Daily SMA20	44
Daily SMA50	41.32
Daily SMA100	41.21
Daily SMA200	36.66

Levels
Previous Daily High	46.37
Previous Daily Low	45.1
Previous Weekly High	46.76
Previous Weekly Low	44.01
Previous Monthly High	46.31
Previous Monthly Low	33.85
Daily Fibonacci 38.2%	45.59
Daily Fibonacci 61.8%	45.89
Daily Pivot Point S1	45.11
Daily Pivot Point S2	44.47
Daily Pivot Point S3	43.83
Daily Pivot Point R1	46.38
Daily Pivot Point R2	47.02
Daily Pivot Point R3	47.66

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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