WTI stabilizes above $ 45.50 as crude markets watch for pandemic developments

• WTI is trading with previous lows and above the $ 45.50 level as traders watch the pandemic and political developments.
• At 9:30 PM GMT, weekly API crude oil inventories could trigger a reaction ahead of Wednesday’s official EIA inventory report.

The WTI bulls were there to support the price action during Tuesday’s session, holding the US benchmark for light sweet crude supported before $ 45.00 and then pushing it back above $ 45.50 early in the US session. However, on the day, WTI crude oil operations are still trading with modest losses of around 10 cents or 0.2%.

WTI Traders Observe Pandemic Developments and Increased Risk Appetite

Pandemic developments apparently weighed on the crude oil space early in Tuesday’s session; News that Germany is considering tighter lockdown restrictions, as well as AstraZeneca facing delays in manufacturing the Covid-19 vaccine, seemed to weigh on the complex from the start. However, the crude oil complex rebounded from lows in the US session apparently in tandem with US stocks as the Covid-19 news stream apparently took a turn for the better; Reports emerged that China’s SinoVac Covid-19 vaccine is 97% effective in early trials.

Looking ahead, events related to the pandemic appear to continue to influence crude oil market price action for the remainder of the week, although the complex is likely to be influenced by political developments in the US as well. and Europe (US fiscal stimulus talks and Brexit) to the extent that these events affect the broader market risk appetite.

In terms of specific crude oil developments, things have been light so far on Tuesday, but weekly API private inventories will be released at 9:30 PM GMT and, as always, could trigger a reaction ahead of official inventory data from the Wednesday’s EIA.

Technical levels