- WTI stabilizes after correcting down from two-month highs.
- Dollar with mixed market results before data and speeches.
Oil prices and stocks are trading flat on Thursday, as optimism dissipates following the announcement of the vaccine’s effectiveness and announcements of new restrictions in various regions of the world.. In addition, we must consider the strong rises that oil was already bringing, so a consolidation and correction was to be expected.
A barrel of WTI rises 0.20% on Thursday and stands around $ 41.40, after climbing to $ 43.03 on Wednesday, the highest level in two months. The correction came after a $ 10 advance between the November floor and the peak. The $ 43.00 zone slowed the advance and favored the correction, which is now turning into a consolidation.
Momentum to the upside was hit by a pullback on Wall Street on Wednesday. On Thursday, European stocks are down and the indicators for US stocks are showing no clear direction. The market is watching the US economic data (unemployment benefits and inflation). On the other hand, in a forum organized by the European Central Bank (ECB), Powell and Lagarde will speak.
In the fundamental aspect, The boost to oil due to the news around the vaccine was overshadowed by the expectation of a reduction in demand in the short term as a result of the new measures to reduce the outbreak of coronavirus cases in Europe and the United States. The Energy Information Agency’s oil inventory report will be released later on Thursday.
Credits: Forex Street
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