WTI stabilises above $45.50 level as crude markets eye pandemic developments

WTI trades off earlier lows and above the $45.50 level as traders eye pandemic and political developments.
Coming up at 21:30GMT, weekly API crude oil inventories could trigger a reaction ahead of Wednesday’s official EIA inventory report.

Joel Frank Independent Analyst

WTI bulls were there to support the price action earlier on during Tuesday’s session, keeping the American benchmark for sweet light crude supported ahead of the $45.00 level and then pushing it back above the $45.50 mark early on during the US session. However, on the day, WTI crude oil trades still trades with very marginal losses of about 10 cents or 0.2%.

WTI traders eye pandemic developments and broader risk appetite

Pandemic developments seemingly weighed on the crude oil complex early on during Tuesday’s session; news that German is mulling tighter lockdown restrictions as well of AstraZeneca facing Covid-19 manufacturing delays seemed to weigh on the complex early on. However, the crude oil complex recovered from lows into the US session seemingly in tandem with a US equities as the Covid-19 newsflow seemingly took a turn for the better; reports emerged that China’s SinoVac Covid-19 vaccine has efficacy of 97% in early trials.

Moreover, Pfizer’s CEO said he thinks the US FDA will vote to approve the Pfizer/BioNTech vaccine on Thursday and that the company is working on a new formulation that would avoid having to store the vaccine at -70 degrees Celsius. Additionally, AstraZeneca released its official Phase III results for its Covid-19 vaccine, which confirmed average efficacy of 70.4% shown by early data (62% efficacy in those given two doses and 90% for those given a half dose and then a full dose).

Looking ahead, pandemic-related developments look set to continue to influence crude oil market price action for the remainder of the week, although the complex is also likely to be influenced by political events in the US and Europe (US fiscal stimulus talks, EU Summit and Brexit) in so far as these events affect the market’s broader appetite for risk.

In terms of crude oil specific developments, things have been light thus far on Tuesday, but weekly API private inventories are set for release at 21:30GMT and, as ever, could trigger a reaction ahead of Wednesday’s official EIA inventories data.

WTI

Overview
Today last price	45.79
Today Daily Change	-0.06
Today Daily Change %	-0.13
Today daily open	45.85

Trends
Daily SMA20	43.59
Daily SMA50	41.08
Daily SMA100	41.13
Daily SMA200	36.66

Levels
Previous Daily High	46.64
Previous Daily Low	45.47
Previous Weekly High	46.76
Previous Weekly Low	44.01
Previous Monthly High	46.31
Previous Monthly Low	33.85
Daily Fibonacci 38.2%	45.92
Daily Fibonacci 61.8%	46.2
Daily Pivot Point S1	45.33
Daily Pivot Point S2	44.82
Daily Pivot Point S3	44.17
Daily Pivot Point R1	46.5
Daily Pivot Point R2	47.16
Daily Pivot Point R3	47.67

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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