- WTI prices rebound to $ 42.00 and above.
- Optimism about a coronavirus vaccine supports the rise.
- Below is the weekly EIA report on crude oil supply.
Crude oil prices They extend the optimism seen at the beginning of the week and push the WTI barrel to new highs above $ 42.00 on Wednesday.
WTI attentive to data, pandemic
West Texas Intermediate prices add to the weekly recovery after US pharmaceutical company Pfizer Inc. (NYSE: PFE) announced that its candidate vaccine is 95% effective based on final analysis figures (versus 90% effective last Monday).
In addition to the optimism surrounding commodities, traders have started to anticipate that OPEC + could extend its oil production cuts for an additional three to six months, adding that the market could move into a deficit scenario as soon as the next year.
It is worth remembering that crude oil prices started the week positively following the vaccine news over the weekend and the latest data showing that Chinese refineries’ production rose to record highs in October (14.09 mbpd). , which adds to the idea of a strong demand for gasoline.
Later in the American session, the EIA will release its weekly report on US crude oil stocks after API reported on Tuesday night an unexpected build of nearly 4.2 million barrels over the past week.
Right now, a barrel of WTI has risen 1.17% to $ 41.85 and faces the next hurdle at $ 42.44 (Nov 18 weekly high) seconded by $ 43.04 (Nov 10 monthly high) and finally $ 43.75 (Nov 10 high). August 26 monthly). On the downside, a breakout of $ 40.12 (Nov. 16 weekly low) would target $ 39.49 (55-day SMA) and then $ 37.09 (Nov. 6 low).