- Prices of the WTI edge higher and target $54.00.
- Attention is on probable announcements by Biden later on Wednesday.
- The API will publish its usual weekly report on US crude oil supplies.
Prices of the West Texas Intermediate (WTI) move closer to the key $54.00 mark per barrel on Wednesday.
WTI stays firm, looks to Biden, API
The barrel of WTI adds to Tuesday’s gains and trades well above the $53.00 mark on Wednesday, although a test of the $54.00 level still remains elusive for oil bulls.
Moving forward, traders will closely follow the developments from the inauguration of Joe Biden as the 46th US President later on Wednesday, with potential announcements regarding the oil industry in the centre of the debate.
On another front, and in its monthly report, the IEA forecast an increase of around 5.5 mbpd in the demand for oil crude in 2021 (to around 96.6 mbpd). The agency also projects an increase of around 1 mbpd in oil production.
In the docket, the API will release its weekly report on US crude oil inventories ahead of the EIA’s report on Thursday.
What to look for around WTI
Prices of the American reference for the sweet light crude oil manage to keep business around levels last seen in February 2020 near $54.00. Past news regarding Saudi Arabia (unilateral oil output cut), the decision of the OPEC+ to refrain from increasing oil production and further US fiscal stimulus already anticipated by traders also collaborate with the upbeat mood surrounding the commodity. However, the relentless increase of coronavirus cases across the globe amidst the vaccine rollout coupled with fresh lockdown measures mainly in China and Europe keeps traders somewhat worried and recovery prospects tempered.
WTI significant levels
At the moment the barrel of WTI is up 1.45% at $53.76 and faces the next hurdle at $53.90 (2021 high Jan.13) seconded by $54.45 (monthly high Feb.20) and finally $59.61 (high Jan.20 2020). On the downside, a breach of $47.20 (monthly low Jan.4) would expose $46.18 (low Dec.23) ahead of $43.94 (monthly low Dec.2).
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
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.