WTI regains $45.00 even as choppy session limits the moves
- WTI fades pullback moves from the highest in nine months.
- Trump announces vaccine delivery to take place next week, US-China, Washington Tehran tensions escalate.
- US holidays restricts the market activity, a light calendar ahead may extend the lack of momentum.
WTI awaits clear signals to extend the latest pullback from $44.79, currently around $45.00, during Friday’s Asian session. The energy benchmark eased from the multi-day high the previous day as global optimism, mainly fuelled through the coronavirus (COVID-19) vaccine hopes, fizzled. Also challenging the oil bulls was the US holiday due to Thanksgiving Day.
Recently, US President Donald Trump mentioned that the covid vaccine delivery will begin the next week, which in turn defied the earlier market pessimism triggered thought AstraZeneca’s announcement of additional trials.
Also on the positive side could be the latest US-Iran tussle, over Tehran’s missile program, which also takes clues from the tussle between Saudi Arabia and Houthis.
Meanwhile, disagreements between the world’s top two economies, namely the US and China, also grew after Beijing warned US President-elect Joe Biden over comments for Taiwan. The news citing only half of the Sino-American trades promised in the deal despite passing 10 months of agreement join the chatters over Hong Kong to cite the tension among the key oil users.
Against this backdrop, expectations that the OPEC+ group may inch towards the further extension of the production cut agreement joins the latest covid vaccine hopes to keep the energy buyers hopeful. Though, a lack of major data/events restricts the uptrend off-late.
Technical analysis
Unless declining back below the August month’s high of $43.86, WTI buyers are less likely to relinquish the controls.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
