WTI returns above $ 73.00, testing monthly highs amid optimistic but reduced liquidity conditions

• WTI is trading fairly subdued, but remains well supported above $ 73.00 after falling towards $ 72.20 previously.
• Positive news about the pandemic has fueled this week’s recovery from lows of $ 66.00, but prices are likely to keep an eye out for the headlines.

Oil prices They have been quite subdued on Thursday, with weaker liquidity conditions by Christmas taking their toll and crushing volatility. First month WTI futures are currently trading just above $ 73.00 and looking to challenge the highs of $ 73.25 touched during the Asian session. These highs were just shy of the December 9 monthly high of $ 73.30. Recent price action suggests that markets remain broadly bullish, falling to $ 72.20 earlier.

Thursday’s calm marks the late arrival of the typical pause before the Christmas / New Years celebration, with oil prices spiked recently amid the ever-evolving global situation for Ómicron. Oil prices have seen an incredible recovery this week from Monday’s lows, with WTI rising nearly $ 7.0 from lows near $ 66.00 per barrel. The positive news about Omicron has been the main driver of the rally, with successive studies in South Africa, Scotland and London showing that the new variant is associated with a significantly reduced risk of hospitalizations. This relieves pressure on governments to implement economically damaging / damaging restrictions on fuel demand.

Strong US data also helped contribute to market risk appetite that soared crude in recent days. Traders are also citing a much larger than expected pull in US crude oil stocks, as revealed by EIA data on Wednesday, as support prices. But Omicron-related news will remain the main driver of risk appetite, and while volumes are expected to decline as the session progresses, oil prices are likely to keep an eye out for new headlines.

Technical levels