- WTI clings to recent gains, supported by investor optimism.
- Dollar strength does not affect oil.
The The price of a barrel of oil is trading unchanged on Wednesday, and retains recent gains. WTI rallied to $ 55.25 on Tuesday and tested that resistance without being able to break it on Wednesday, the highest price in a year. Since the beginning of February it has risen by 6%.
After the multi-month high, WTI had a small pullback, finding support at $ 54.60, from where it returned to the $ 55.00 zone where it is trading. The rise in the stock markets in the world is being a key factor for the price of crude.
Investors are seeing positive developments in coronavirus vaccinations, US tax stimulus talks and the latest corporate results. In turn, the dollar remains firm against major currencies. The DXY is trading near the month high around 91.20 without affecting oil.
The Tuesday’s US inventory data was another major factor, by showing a decrease in the stock of gasoline and crude oil. OPEC + estimates that if the economic recovery materializes, the market could enter a deficit in 2021. Today there is a ministerial meeting of the cartel and its allies, although no adjustments in production quotas are expected.
On the data side, ADP’s employment report and data on service sector activity will be released in the US today.