- The rise appears more compelling amid hopes for a faster recovery in demand.
- Optimism fueled by the coronavirus vaccine underpins the move up, ahead of approval by the US FDA.
- The increase in the supply of US crude remains a cause for concern.
Have appeared new purchases just above the $ 45.50 region, which has allowed a rebound in WTI (NYMEX futures) to test the level of $ 46, while optimism about coronavirus vaccine continues to keep buyers hopeful.
Oil bulls continue to celebrate the narrative that Launching the Coronavirus Vaccine Would Help Accelerate the Global Economic Rebound, which, in turn, would boost the prospects for a recovery in oil demand.
Globally, vaccinations have started in the UK, while Canada approved the inoculation on Wednesday. The U.S. Food and Drug Administration (FDA) is set to approve Pfizer’s covid vaccine later in the day.
Also, an explosion in an Iraqi oil field has also supported WTI prices. Two wells in a small field were set ablaze by explosives on Wednesday, Reuters reported, although production was not affected.
Despite the rebound, Markets remain cautious as US crude supplies rise, especially after the latest weekly report from the Energy Information Administration (EIA) showed a 15.2 million barrel increase in crude inventories.
Attention is also focused on critical US CPI data and jobless claims looking for new signals for oil prices, sensitive to movements in the US dollar.
WTI technical levels
Wednesday’s doji candle above the 12-day support line suggests a gradual recovery in oil prices with a view to the monthly high of $ 46.75. Meanwhile, any drop below $ 45.17, where the indicated support line is, could point to the monthly low near the $ 44 level, ”explains Anil Panchal, analyst at FXStreet.
Additional levels of WTI
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
