WTI retraces from eight-month highs above $ 46

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  • WTI prices rise 30% in November to reach levels above $ 46.
  • The EIA has reported an unexpected decline in US oil reserves.

First month’s WTI futures They have traded higher for the sixth consecutive session on Wednesday, climbing to levels above $ 46 for the first time since early March, before falling back to the $ 45.75 area.

Oil rises after EIA report

The US Energy Information Administration reported that US oil reserves decreased by 754,000 barrels, against market expectations of an increase of 127,000. This news has sent the West Texas Intermediate price of a barrel to highs of $ 46.25, levels not seen since the first wave of the pandemic gripped the world economy in March.

Beyond that, oil prices have recovered almost 30% in November, driven by a combination of factors. First, the progress of the various COVID-19 vaccines that have reported test results this month has raised expectations of a cure for the coronavirus available in the coming months, easing concerns about the weak outlook for the oil demand.

In the United States, the market anticipates a fiscal stimulus package by the Biden administration and more monetary easing action by the Federal Reserve to prop up the US economy.

Finally, the hope that OPEC + will finally sign an agreement to extend production cuts beyond January 2021 at a key meeting of oil producers to take place on November 30, is contributing to the oil rebound.

Technical levels

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