WTI reversal from $42.40 daily highs extends below $42
- WTI futures return below $42, still positive on the day.
- Oil prices appreciate on hopes of an OPEC+ deal.
- Longer-term, WTI remains steady between $40 and $43.
Front-month WTI futures have appreciated further on Wednesday, extending the rebound from weekly lows near $40 to daily highs at $42,45 before pulling back in the US trading session and return to $41.60 area,
Oil advances on hopes of an OPEC+ deal
Crude oil prices appreciated nearly 3% during the Asian and European trading, on the back of news reporting that OPEC members restated on Tuesday their full conformity with April’s plan to extend production cuts beyond January 2021.
Furthermore, the announcement by drugmaker Pfizer that the latest tests show that of its COVID-19 vaccine is 95% effective have boosted optimism further. Pfizer’s news comes right after Moderna disclosed very promising test results on Monday, which has eased concerns about the surging infections.
In the US, the Energy Information Authority has reported a shorter than expected increase on crude oil stocks during the week of November 13, which has been supportive for oil futures.
WTI prices remain consolidating above $40
From a technical perspective, oil prices remain in a $3 range above $40 with om a slightly positive bias after having appreciated beyond 20% over the last two weeks.
On the upside, WTI should confirm above $42 (November 16 high) to confirm the bullish trend, aiming towards $43 (November 11 high) and late August highs at $43.80. On the downside, below intra-day low at $41.00 next support lies at $40 (psychological level and November 13, 16 lows) and 50-day SMA at $39.50.
Technical levels to watch
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Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
