WTI extends earnings to $ 45.00, its highest level since March 6

• WTI rose nearly $ 2 to $ 45 for the first time since early March on Tuesday.
• The confluence of risk factors, including declining political uncertainty and US vaccines, strong data and optimism from OPEC + are helping.

The WTI it is trading nearly $ 2 or 4.5% on Tuesday, pushing the US benchmark for light sweet crude to briefly above $ 45.00, its highest levels since March 6, before Saudi Arabia started the war. that ultimately resulted in the first month’s WTI futures collapsing to all-time lows below $ 30 per barrel.

Confluence of positives lifts crude to eight-month highs

Crude oil prices soared Tuesday, apparently driven by a significant spike in appetite in risk appetite on some macro bullish drivers;

The Trump Administration allowed the General Services Administration to inform the incoming Biden Administration that the formal transition process can begin. Although Trump has yet to admit defeat and is still carrying out his myriad lawsuits and alleging fraud, this appears to be the first step in admitting defeat, giving the markets one less thing to worry about.

Additionally, stocks and commodities appear to continue to gain support amid the glow of Monday’s positive vaccine update from AstraZeneca, as well as stronger-than-expected US data and news that the US Department of the Treasury he’s in “good hands” with former Fed chair Janet Yellen in charge.

More specifically for the crude oil complex; The idea that despite recent positive news on the vaccine front, OPEC + members have yet to show a lesser appetite for production cuts is also favorable.

In fact, the biggest threat to crude oil markets expected from the extension of the production cut of at least three months by the cartel is likely to be the recent rebound in crude prices; countries may want to capitalize on higher prices by increasing production at an earlier date (although this is just speculation).

WTI bulls await retest of great support at Aug 26 high

WTI crude prices broke the August 26 high of $ 43.78 during the European session on Tuesday, opening the door for a sustained move higher, given the lack of significant areas of resistance before $ 49.00.

However, some profit-taking is likely to be warranted in the wake of Tuesday’s big gains and could push WTI towards a retest of the August 26 high. The bulls here are likely to be eager to buy on the dips, so it should provide formidable resistance, but if it does rise, the November 11 high of $ 43.00 will be in focus.

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