WTI rally continues despite large US inventory build

WTI rallies to fresh eight-month highs near $45.50.
Expectations for vaccine-led global economy recovery power gains.
The API reports a large buildup of inventories in the weeke ended Nov. 20.

Omkar Godbole FXStreet Contributor

Oil has climbed to fresh multi-month highs, extending Tuesday's price gains as optimism emanating from potential coronavirus vaccines overshadows inventory build-up in the US.

West Texas Intermediate (WTI), the North American oil benchmark, is currently trading at $45.50 per barrel, representing over 1% gains and the highest level since March 6.

Large crude build

On Tuesday, the American Petroleum Institute (API) reported crude oil inventories of 3.8 million barrels for the week ending Nov. 20, beating analysts' forecast of an inventory build of just 127,000 barrels.

So far, however, the large inventory, a sign of weak demand, has failed to put brakes on oil's rally. The black gold has risen from roughly $34 to levels above $45 this month. Prices jumped over 4% on Tuesday to register its biggest single-day gain since Nov. 9.

Hopes for a swift vaccine-led global economic recovery in 2021 seem to be powering gains in oil. Drugmakers Pfizer and Moderna announced encouraging results of their respective experimental vaccines earlier this month, boosting demand for risk assets.

Technical levels

WTI

Overview
Today last price	45.5
Today Daily Change	0.61
Today Daily Change %	1.36
Today daily open	44.89

Trends
Daily SMA20	40.16
Daily SMA50	40.15
Daily SMA100	40.69
Daily SMA200	36.93

Levels
Previous Daily High	45.24
Previous Daily Low	42.86
Previous Weekly High	42.68
Previous Weekly Low	40.36
Previous Monthly High	41.93
Previous Monthly Low	35.08
Daily Fibonacci 38.2%	44.33
Daily Fibonacci 61.8%	43.77
Daily Pivot Point S1	43.42
Daily Pivot Point S2	41.95
Daily Pivot Point S3	41.03
Daily Pivot Point R1	45.8
Daily Pivot Point R2	46.71
Daily Pivot Point R3	48.19

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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