WTI corrects last week’s rally, backs down below $ 52

  • The price of oil fell after closing the four days prior to the rise.
  • Less optimism in the markets puts downward pressure on WTI.

Crude prices rose sharply last week after Saudi Arabia announced a voluntary cut in production and the Democratic majority in the US Senate raised hopes for further fiscal stimulus. The West Texas Intermediate (WTI) barrel gained more than 9% in the first week of 2021 and touched its highest level since late February at $ 52.72 on Friday.

However, with the market mood becoming more cautious at the start of the new week, WTI reversed its direction and was trading $ 51.90, down almost 1.5%.

He growing number of coronavirus infections worldwideHe and the renewed restrictions, especially in Europe, seem to reignite concerns about the recovery of energy demand in 2021 despite the launch of the vaccine. Additionally, on Monday China reported the largest one-day increase in confirmed COVID-19 cases since July and put additional weight on oil prices.

Meanwhile, the generalized dollar strength it is allowing the downward pressure on WTI to remain intact. No major US macro data will be released for the remainder of the day and market sentiment is likely to continue to affect oil performance. At the moment, S&P 500 futures are down about 0.5%.

Technical levels

.

You may also like