- WTI futures trim losses after retreating to $40.50 lows
- Oil prices remain weighed by fears about more lockdowns.
- WTI oil remains biased higher while above $40.
Front-month WTI futures have ticked up during Thursday’s US trading session to return towards $41. The price of the West Texas Intermediate barrel, though, remains slightly negative on the day, after having peaked at $42 on Monday.
COVID-19 concerns hit oil prices
Crude oil prices retreated earlier today amid a risk-averse sentiment as coronavirus cases continue escalating in the US and Europe. Fears about the impact of tighter restrictions have cooled off Monday’s enthusiasm following the promising results of Moderna’s vaccine.
Beyond that, the conclusions of Monday’s OPEC+ meeting, with the majority of the producer countries supporting an extension of the output cuts beyond January has failed to brighten sentiment. The market will wait for the full OPEC meeting due in November 30 and December to know cartel’s actions to take.
WTI prices consolidate above $40
From a technical perspective, oil prices are consolidating above $40 with technical indicators pointing upwards after having appreciated beyond 20% over the last two weeks.
On the upside, immediate resistance lies at $42 (November 16 high), $43 (November 11 high) and then late August highs at $43.80. On the downside, support levels are the mentioned $40 (psychological level and November 13, 16 lows) and below here, the 50-day SMA at $39.30 and $37.10 (November 5 low).
Technical levels to watch
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