- Oil continues to be driven by expectations for the coronavirus vaccine.
- WTI rises for the third day in a row and tests the $ 43.00 zone.
The price of oil is rising again and continues to be supported by appetite for risk, which was activated by advances for a vaccine for the coronavirus. The WTI price climbed to $ 43.02, reaching the highest level in two months and then slightly retraced. It is trading at $ 42.65, almost 3% above Tuesday’s close.
The expectation of an increase in the demand for crude oil, given the announcements of the effectiveness of the vaccine, continues to support the upward trajectory of oil. This optimism continues to be reflected in stocks. On Wall Street, the futures of the main indices point to an open with gains around 1%. In Europe, the main places advance 0.50% on average.
The momentum of the vaccine is overshadowing the data on the increase in inventories and also on the rise in production. The latest data in this regard was the increase in production in Libya above what was agreed with OPEC +.
From a technical point of view, the breakout of $ 42.00 gave it further momentum by strengthening the bullish run after leaving behind significant resistance. In case of exceeding $ 43.00, the next barrier is seen in the August highs at $ 43.75. In the opposite direction, the first strong support is at $ 41.60, followed by $ 39.70.
Credits: Forex Street
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