WTI recedes from 9-month tops near $47.00 on OPEC+ headlines

Prices of the WTI fade the earlier move beyond $46.00.
OPEC+ decided to curb ongoing output cuts by 500K barrels.
The next level of note emerges at the $50.00 mark per barrel.

Pablo Piovano FXStreet

Prices of the American benchmark for the sweet light crude oil advanced to new peaks in the $46.70 region earlier in the session, although they run out of traction afterwards.

WTI softer after OPEC+ deal falls short of expectations

After recording fresh 9-month highs in the $46.70 zone, prices of the WTI lost some impetus and receded to the current $45.70 region at the end of the week.

The barrel of the WTI lost upside momentum after the OPEC+ announced on Thursday it will gradually increase its oil output by 500K bpd starting in January vs. the 2 mbpd originally planned. The cartel now intends to reach the 2 mbpd by April.

In the meantime, crude oil remains bid on vaccine hopes coupled with prospects of higher demand in 2021 and further US stimulus, all underpinning the idea of a strong rebound in the global economy.

Later in the NA session, driller Baker Hughes will publish its weekly report on US oil rig count.

WTI significant levels

At the moment the barrel of WTI is up 1.06% at $46.10 and faces the next hurdle at $46.66 (monthly high Dec.4) seconded by $48.39 (monthly high Mar.4) and finally $54.45 (monthly high Feb.20). On the other hand, a breach of $43.94 (monthly low Dec.2) would expose $43.04 (high Nov.11) ahead of $40.12 (weekly low Nov.16).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD holds losses below 1.1650 on renewed USD uptick

EUR/USD is off the low but remains in the red below 1.1650 in European trading on Thursday. The pair faces headwinds from a renewed uptick in the US Dollar amid a negative shift in risk sentiment. Surging energy prices due to the Middle East war keep the bearish pressure intact on the Euro. The US Jobless Claims data are next of note.

GBP/USD stays weak near 1.3350 amid UK stagflation risks

GBP/USD sticks to losses near 1.3350 in the European session on Thursday. The Pound Sterling loses ground amid fears that the United Kingdom economy could face stagflation risks due to higher energy prices, while the US Dollar attracts fresh havem demand ahead of the US Jobless Claims data.

Gold climbs near $5,200 as Iran war fuels safe-haven demand

Gold price extends its gains for the second successive session on Thursday as traders seek safety amid the ongoing war in the Middle East. US and Israeli strikes across Iranian territory and widespread Iranian missile and drone retaliation across the Middle East, including attacks on regional targets and military sites, prolong the crisis and its impact.

Top Crypto Gainers: Decred, Zcash, and Dogecoin lead recovery as Bitcoin crosses $72,000

Bitcoin trades above $72,500 at press time on Thursday, holding its 6% gain from the previous day, contributing to a broader market recovery. The total cryptocurrency market capitalization stands at over $2.43 trillion as the broader market sentiment improves significantly.

First Venezuela, now Iran: The US-China energy war escalates

At first glance, the latest escalation involving the United States with both Iran and Venezuela looks like another chapter in a long-running geopolitical story. But viewed through a broader strategic lens, something else may be unfolding: Energy.

Cardano Price Analysis: Approaches key trendline amid bearish sentiment

Cardano (ADA) price is approaching its descending trendline around $0.28 at the time of writing, set to shape the next directional move. The derivatives metrics paint a bearish picture, with ADA’s Open Interest continuing to fall and short bets rising among traders.