- WTI futures bounce up from $37.55 and return to $39 area.
- Oil prices rise as bright data boosts hopes of economic recovery.
- Crude prices are expected to consolidate over the next weeks – OCBC.
Front-month WTI futures have opened the week on a strong footing, appreciating more than 2% to reach prices beyond $39. WTI oil has taken back all the ground lost on Friday, fuelled by more positive risk sentiment, as upbeat economic data has offset fears of a second coronavirus wave.
Oil prices rise despite higher COVID-19 cases
WTI prices have bounced up from session lows at $37.54 to advance about $1.5 on the European trading session and test the $39 level during the US trading. An improved market mood, following better than expected industrial profits figures in China, has eased concerns about the global growth in coronavirus cases and increased demand for the higher-yielding oil.
Beyond that, news reports about that China has approved a coronavirus vaccine for military use have contributed to improving sentiment. On the negative side, however, the bankruptcy of the US fracking giant, Chesapeake, crushed by the decline of oil and gas prices has weighed on the overall positive market mood.
Oil prices, expected to consolidate over the next weeks – OCBC
On a bigger picture, oil prices remain consolidating below $40 after the steady recovery seen in May and, according to the commodity strategists at the OCBC Bank, this trend is expected to extend into the coming weeks, “The market appears to be balancing itself, with the high prices encouraging a supply comeback in the US. This is in addition to the high amount of oil stock around the world, notably in the US (…) We continue to maintain our view that oil may have reached its peak in the short-run and prices are likely to consolidate over the next few weeks.”
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 posts gain, yet dive below 0.6500 amid Aussie CPI, ahead of US GDP
The Aussie Dollar finished Wednesday’s session with decent gains of 0.15% against the US Dollar, yet it retreated from weekly highs of 0.6529, which it hit after a hotter-than-expected inflation report. As the Asian session begins, the AUD/USD trades around 0.6495.
USD/JPY finds its highest bids since 1990, approaches 156.00
USD/JPY broke into its highest chart territory since June of 1990 on Wednesday, peaking near 155.40 for the first time in 34 years as the Japanese Yen continues to tumble across the broad FX market.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.