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.

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