- WTI reaches the highest level since February 2020 around $ 53.25.
- The USD pullback, Saudi cuts and US stimulus hopes are driving oil prices.
- The focus shifts to weekly API crude stocks and coronavirus updates.
He WTI (NYMEX futures) has broken up the consolidation mode of the Asian session and has reached new eleven-month highs around the $ 53.25 level. At time of writing, WTI is slightly down, staying positive for the day near the $ 53 level.
The latest upward movement of black gold can be attributed to widespread decline in the US dollaras Treasury yields appear to stabilize after the recent surge. A weaker dollar makes oil, denominated in dollars, cheaper for foreign buyers.
In addition to the optimistic tone around oil, buyers are hopeful that the voluntary oil production cut announced by Saudi Arabia last week will lead the market to a deficit in 2021, offsetting the impact of demand due to coronavirus lockdowns.
The bulls seem to have ignored growing concerns about covid around the world. Japan is likely to extend its state of emergency to other prefectures and the UK is contemplating tighter restrictions depending on the spread of the virus.
The main factor that is developing so far in 2021 is the expectations of increased US fiscal stimulus, which has pushed up Treasury yields. Therefore, updates on the stimulus along with the coronavirus statistics will focus investors’ attention and risk appetite, ultimately impacting higher-yielding oil prices.
In addition, it is worth highlighting the weekly data on crude stocks from the American Petroleum Institute (API), which will be published during the American session today.
WTI technical levels
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