WTI in wait and see mode between $ 59.00 and $ 60.00

• Crude oil markets continue to see range-limited trading conditions, and first-month WTI futures remain locked between the $ 59.00 to $ 60.00 ranges.
• The undecided trading conditions are not too surprising given the many topics discussed by crude oil market participants.

Crude Oil Markets continue to see limited range trading conditions; The first month WTI futures remain locked between the $ 59.00 to $ 60.00 ranges that have prevailed for the past few days and have been oscillating between slightly red to slightly green. Beyond the recently established intraday range, the main support and resistance levels to watch out for are the $ 58.00 and $ 61.00 areas.

Performance of the day

The indecisive trading conditions in the crude oil markets are not too surprising, given the many issues that crude market participants are juggling right now, issues that at this point seem to cancel each other out. On the bullish side of the equation; Optimism has been building on the prospects for a global economic recovery in recent weeks, particularly regarding the US economy following the series of strong data released late last week / early this week. Vaccine launches continue and, sooner or later, market participants await the end of containment restrictions from the pandemic and a resurgence in demand for crude oil.

However, short-term demand catalysts are spoiling the otherwise optimistic outlook; The pandemic has accelerated in India, Brazil and some key developed countries in Asia, increasing the risk of tougher lockdowns there. Meanwhile, Europe remains (mostly) under lockdown, and while Italy will soon ease restrictions, Germany is likely to tighten them. The darkening outlook for short-term crude oil demand has been reflected in downward revisions to oil demand growth forecasts from the desks and major oil market institutions for 2021. Meanwhile, the news on the supply side has been more negative than positive in recent times; OPEC + is gradually increasing production in the coming months in accordance with last week’s decision and the United States and Iran appear to be taking steps in the right direction towards a return to JCPOA, which means that a large part of the supply Iranian could soon return to the market (although desks believe that the rest of OPEC + will cut production to compensate for this).

For crude oil markets to resume their long-term upward trajectory, short-term demand prospects will have to improve, meaning countries such as Europe, India and Brazil control the virus and ease lockdowns. According to UBS Commodity Analyst Giovanni Staunovo, “Oil is currently in wait-and-see mode, with market participants looking at the timing of vaccination to understand when oil demand will pick up further and in the nuclear talks in Vienna to see when more Iranian barrels could return. ”

Technical levels