WTI Extends Hike Above $ 38.00 Before API, US Elections

• WTI prices rise further and return to the critical $ 38.00 level.
• Risk sentiment anticipates a victory for Joe Biden in Tuesday’s election.
• API will report on US crude oil inventories later in the American session.

Crude prices they extend the optimism seen at the beginning of the week and recover the level $ 38.00 per barrel and more on Tuesday.

WTI looks at US elections, data

West Texas Intermediate prices hover around the area of ​​4-day highs above $ 38.00 amid a renewed strong appetite for riskier assets ahead of the US election.

In fact, commodities and risk complex in general trade with decent earnings amid growing hopes that Joe Biden can become the next president of the United States later this week. This scenario contemplates the possibility of additional stimulus in the short term, as well as a multilateral approach to the trade conflict between the United States and China.

However, further gains in crude oil or even a more serious bullish attempt appear limited in the current context of heightened concerns about crude oil demand amid the coronavirus pandemic and its impact on the global economy.

In the data space, the API will report its weekly measure of US crude oil reserves ahead of Wednesday’s EIA report and Friday’s weekly oil rig count by driller Baker Hughes.

Technical levels

At the moment, a barrel of WTI is up 3.04% to $ 38.17 and is facing the next rising barrier at $ 39.97 (55-day simple moving average) followed by $ 40.30 (100-day simple moving average) and finally $ 41.87 (high. monthly on October 20). On the other hand, a gap of $ 33.67 (monthly low on November 2) would expose $ 29.11 (monthly high on April 3) and then $ 19.29 (monthly low on March 30).