- WTI rises to the fresh high since August 31.
- Market optimism, US dollar weakness favor bulls ahead of private inventory data.
- API stockpiles earlier rose to 4.174 for the week ended on November 13.
WTI refreshes multi-day high, marked earlier in Asia, while rising to $43.65, up 1.67% on a day, ahead of Tuesday’s European session opening. That said, the energy benchmark prints a seven-day winning streak to attack August month’s top.
Welcome prints of the November month’s preliminary activity numbers from the US seem to have helped the black gold to remain positive the previous day. However, the commodity’s recent optimism takes clues from US President-elect Joe Biden’s nearness to the White House as Donald Trump concedes defeat, hesitantly though.
Also favoring the oil bulls could be the hopes that the coronavirus (COVID-19) will be tackled sooner as the vaccine race intensifies. Recently, AstraZeneca announced a 90% effective rate for its small dosage cures to the deadly virus.
Furthermore, the US dollar’s failure to keep the previous day’s upside momentum also backs the commodity prices. While portraying the same, the US dollar index (DXY) fizzles Monday’s notable U-turn from the September low.
Moving on, weekly oil inventory data from the American Petroleum Institute (API) could offer immediate direction to the energy benchmark while risk catalysts remain as the key drivers. Although API data have recently marked an increase of stockpiles, any surprise draw can add strength to the WTI prices.
Technical analysis
The August month’s peak and February low, respectively near $43.85 and $43.95, offer immediate resistance to the energy benchmark targeting $44.00. Though, any further upside won’t refrain from challenging March’s top near $48.75.
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 holds hot Australian CPI-led gains above 0.6500
AUD/USD consolidates hot Australian CPI data-led strong gains above 0.6500 in early Europe on Wednesday. The Australian CPI rose 1% in QoQ in Q1 against the 0.8% forecast, providing extra legs to the Australian Dollar upside.
USD/JPY sticks to 34-year high near 154.90 as intervention risks loom
USD/JPY is sitting at a multi-decade high of 154.88 reached on Tuesday. Traders refrain from placing fresh bets on the pair as Japan's FX intervention risks loom. Broad US Dollar weakness also caps the upside in the major. US Durable Goods data are next on tap.
Gold price struggles to lure buyers amid positive risk tone, reduced Fed rate cut bets
Gold price lacks follow-through buying and is influenced by a combination of diverging forces. Easing geopolitical tensions continue to undermine demand for the safe-haven precious metal. Tuesday’s dismal US PMIs weigh on the USD and lend support ahead of the key US macro data.
Crypto community reacts as BRICS considers launching stablecoin for international trade settlement
BRICS is intensifying efforts to reduce its reliance on the US dollar after plans for its stablecoin effort surfaced online on Tuesday. Most people expect the stablecoin to be backed by gold, considering BRICS nations have been accumulating large holdings of the commodity.
US versus the Eurozone: Inflation divergence causes monetary desynchronization
Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture, considering that the recent hawkish twist in the tone of the Fed might continue to push US long-term interest rates higher and put upward pressure on bond yields in the Eurozone.