WTI Recovers Above $ 48 For First Time Since March Amid Risk Appetite

• Crude oil markets have focused on a broader risk appetite on Thursday and have therefore rebounded given the risk.
• WTI eclipsed the $ 48.00 level for the first time since the beginning of March and is forecasting a move towards $ 50.

WTI Crude Oil Futures of the first month have been mainly focused on a broader risk appetite compared to the fundamentals on the supply side of the crude oil market on Thursday and thus have recovered along with gains in other risk assets such as US stocks (S&P 500 + 0.5%) and how the dollar has fallen (DXY -0.7%). WTI rebounded above $ 48.00 for the first time since early March and is currently trading at $ 48.30, just below the highs of $ 48.58.

WTI is inspired by a broader risk appetite

Some macroeconomic factors have driven risk in the market tone that has supported crude oil markets on Thursday; 1) Fed Chairman Powell’s dovish tone at the post-meeting press conference in which he emphasized that the Fed’s ultra-accommodative stance is going nowhere in the short term and that the Fed has the flexibility to do even more if necessary, 2) a continued pumping of hopes that more U.S. Covid-19 aid and a Brexit deal could be reached, and 3) figures from manufacturing and labor market surveys Favorable US markets, prompting bets for more Fed stimulus in January. Plus, add a healthy dose of vaccine optimism that continues to permeate the market.

WTI targets a move to $ 50

WTI is looking for further gains with the first significant area of ​​resistance being the early February low at $ 49.50. Just above that is the psychologically important $ 50 level and above the key support zone for most of 2019 between $ 50.50 and $ 51.00.

Weekly chart