- The WTI barrel finally breaks above the $ 60.00 level.
- Risk appetite continues to support the recovery.
- The API and EIA reports will be released later in the week.
Crude oil prices they extend the rally and finally break above the $ 60.00 level on Monday.
WTI sustained by risk appetite
West Texas Intermediate prices advanced for the second consecutive session on Monday, returning above $ 60.00 per barrel for the first time since January 2020.
Risk appetite further supports the rally in crude oil along with mounting speculation that a “super cycle” in commodities could be in the offing.
Further, the speculative community noted that net longs in the commodity rose to 4-week highs during the week ending February 9, according to the CFTC report. The relentless uptrend in open interest hints at the idea that there might be room for further improvement on the short-term horizon. Against this, the extreme overbought condition (based on the daily RSI) has the potential to trigger a downward move sooner rather than later.
The OPEC news cites that the cartel now expects oil demand to rise by 5.8 mbpd in 2021, slightly lower than previous forecasts, in response to the re-implementation of lockdown measures in several developed economies in the past. what is the year.
Later in the week, the usual reports on US crude oil supply by API and EIA are due Tuesday and Wednesday, respectively.
What to look for around WTI
US benchmark prices for light sweet crude (finally) are trading at multi-month highs above $ 60.00 per barrel. Increasing inflows into commodity-based ETFs continue to support the rally in crude oil alongside the rise in net speculative longs. The persistent fall in the supply of crude oil from the US is another factor that pushed prices higher in recent weeks, all in the context of a favorable environment for riskier assets and the weakness of the dollar. In addition, strong growth prospects in China add to the acceleration of the launch of the vaccine in Europe / Rest of Asia and translate into growing expectations of a strong rebound in the post-coronavirus pandemic.
Technical levels
Right now, a barrel of WTI is gaining 0.91% at $ 60.15 and facing the next resistance at $ 60.92 (February 15, 2021 high) seconded by $ 65.62 (January 8, 2020 high) and finally $ 66.58. (April 23, 2019 maximum). On the other hand, a break of $ 57.43 (Feb 12 low) would target $ 51.66 (Feb 1 monthly low) and then $ 50.84 (55 day SMA)
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