WTI recoils below $ 47.00 as risk appetite fades

• WTI has seen a pullback below $ 47.00 from Thursday’s highs amid a deterioration in the market’s broad appetite for risk.
• Markets are concerned about the lack of progress in the Brexit negotiations and the US fiscal stimulus.

The First Month Futures Contract for the US Benchmark. for light sweet crude, West Texas Intermediary (o WTI) trading with slight gains on Friday, but has seen a pullback below the $ 47.00 level following Thursday’s rally that took the crude contract as high as $ 47.70. Currently, first month WTI futures are trading around 10 cents or 0.1% higher on the day near $ 46.90.

Crude oil optimism wanes as sentiment deteriorates

The slight pullback from the highs seen in crude oil markets echoes a broader deterioration in risk appetite seen in equity, bond and currency markets. Markets appear to be showing some concern about the lack of progress towards an agreement on the UK’s future trade relationship with the EU and increased tax aid from Covid-19 in the US Officials on both sides of the Channel Mancha now seem to see no deal as the most likely outcome, something that would hamper the European economic recovery. Meanwhile, a deal on another round of US fiscal stimulus still seems a long way off, according to a Politico citing sources. But crude oil markets continue to trade decent gains for the week; As it stands, WTI is up just under 1.5%.

In terms of supply-side news, please note that the OPEC + Joint Ministerial Monitoring Committee will meet on December 17 (next Thursday) and review secondary data and current crude oil market conditions before making a Policy recommendation to OPEC +, although this policy is highly unlikely that the recommendation will deviate significantly from the cartel’s decision earlier in the month to begin phasing out its current production cuts in early 2021, given that not much has changed. in the oil markets, fundamentally speaking, since the beginning of the month.