- WTI futures cut losses and return near multi-year highs at $ 83.95.
- Oil prices consolidate after a six-week rally.
WTI futures for the first month They have rallied to $ 82.50, picking up previous losses to return to near multi-year highs at $ 83.95. However, on the bigger picture, crude prices remain within previous ranges, consolidating after a nine-week rally.
Oil rally stalls on renewed COVID-19 fears
Oil prices fell back today as German Chancellor Angela Merkel and Federal Reserve Chairman Jerome Powell warned of demand disruptions if COVID-19 infections reappear. Rising coronavirus cases in China and Russia have raised concerns that the pandemic is not over yet.
Additionally, the Baker Hughes report has shown the first drop in oil rigs in the past seven weeks. The number of US rigs drilling for oil fell to 443 this week, from 445 the previous week, while natural gas fell by one to 542, according to the report.
On Thursday, a report released by the National Oceanic and Atmospheric Administration revealed that next winter is expected to be warmer than average in the US, adding negative pressure to crude oil futures.
WTI prices consolidate below $ 84.00
Crude prices have remained operating in a range between 80.75 and 83.90 for most of the week, consolidating after having risen more than 35% in the last two months. On the upside, a clear move above 83.95 could open the way to the psychological 90.00 area.
On the downside, immediate support is at the intraday level of 82.50 and 81.50 (Oct 22 low) before the Oct 20 and 21 lows of 80.80.
Technical levels
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