Categories: Markets

WTI rises to multi-day highs above $ 53.00

  • WTI barrel prices break the $ 53.00 level.
  • The now softer tone of the dollar supports the rise in the raw material.
  • The US economy expanded 4.0% quarter-on-quarter during the October-December period.

West Texas Intermediate prices They are trading in the area of ​​multi-day highs above $ 53.00 per barrel so far on Thursday.

WTI remains capped at $ 54.00

The barrel of the US benchmark for light sweet crude regains bullish traction in the second half of the week and manages to break above $ 53.00 to reach new 6-day highs.

Renewed selling pressure hitting the dollar gives additional legs to the rally in crude oil prices, which have now turned attention to the key resistance region around the $ 54.00 criterion.

The rise in WTI also offsets traders’ concerns regarding the larger-than-expected weekly build-up in US crude oil supplies, as the EIA reported on Wednesday.

What to look for around WTI

US benchmark prices for light sweet crude are corrected from highs near $ 54.00. Past news on Saudi Arabia (unilateral cut in oil production), OPEC + decision to refrain from increasing oil production, and increased US fiscal stimulus already anticipated by traders all contributed to the optimistic climate. that surrounds the raw material, particularly in the first half of the new year. However, the relentless rise in coronavirus cases amid the launch of the vaccine, coupled with new lockdown measures, mainly in China and Europe, keeps traders somewhat concerned and the prospects for recovery temperate.

Technical levels

Right now, the WTI barrel is gaining 1.37% at $ 53.33 and facing the next hurdle at $ 53.90 (Jan 13, 2021 high) seconded by $ 54.45 (Feb 20 monthly high) and finally $ 59.61 ( January 20, 2020 maximum). On the other hand, a gap of $ 47.20 (January 4, 2021 low) would expose $ 46.18 (December 23 low) before $ 43.94 (December 2, monthly low).