- WTI has risen above $ 59.00 in recent trading amid weak USD and a positive fundamental backdrop.
- Thus, crude oil markets have more than made up for losses suffered on Thursday amid pessimistic reports from OPEC and EIA.
The prior month’s futures contracts for the US benchmark for light sweet crude, West Texas Intermediary (or WTI), They have been in the lead for the past few hours this Friday. After falling on Thursday, as price action was influenced by somewhat more pessimistic than expected demand forecasts in the OPEC oil market and International Energy Agency reports, buyers in the declines They more than offset these losses on Friday, driven by OPEC + compliance and the weak US dollar. In recent trade, WTI managed to climb above the $ 59.00 level for the first time in 13 months, a powerful blow from the European session lows below $ 57.50.
As optimistic as the outlook may seem on both the demand and supply fronts, it is worth noting some risks that could affect; WHO has just sounded the alarm about people who are being reinfected by new variants of Covid-19 after being infected by the original variant. Meanwhile, Melbourne, Australia, which returned to a sudden lockdown on Friday serves as a reminder that the bar is not high at all for the major economies that have controlled the pandemic comparatively better than Europe and the US (China). , Australia, etc.) to aggressively re-implement the blockade.
These countries are for the most part lagging behind the UK and US in terms of vaccine deployment, so the risk of sudden crashes will persist for a while and could represent a greater downside risk to forecasts for demand growth by 2021, which would affect crude markets.
Oil markets also remain underpinned by strong ongoing OPEC + cooperation and compliance, as well as voluntary cuts of 1 million barrels per day from Saudi Arabia, which have contributed to a tightening of global markets despite that short-term demand has taken a hit due to winter closings in major economies.
Technical Levels
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