WTI jumps above $59 boosted by upbeat ZEW data
- ZEW data from Germany eases concerns over economic slowdown in eurozone.
- Goldman Sachs raises Brent target to $63 from $60 after OPEC decision.
- Coming up: API's Weekly Crude Oil Stock data.
Crude oil prices came under modest selling pressure during the early trading hours of the European session and the barrel of West Texas Intermediate dropped toward mid-$58s before gaining traction in the last hour. As of writing, the WTI was up 0.4% on the day at $59.25.
Signs of life in the European economy
The upbeat ZEW survey, which showed the Economic Sentiment both in Germany and the eurozone improved sharply in December, seems to have provided a boost to crude oil prices by easing concerns over the potential negative impact of a deep economic slowdown in the euro area on the energy demand.
Meanwhile, Goldman Sachs announced that it raised the 2020 Brent oil average price forecast to $63 from $60 following the OPEC+ decision to deepen the oil output cuts by 500,000 barrels per day. Similarly, Russia's Gazprom Neft CEO Alexander Dyukov noted that the additional supply curbs would help support oil prices at $55-65 per barrel in the first quarter, as per Interfax news agency.
Later in the day, the American Petroleum Institue will be releasing its Weekly Crude oil Stock data.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
