- WTI futures trim losses after falling to lows of $ 40.50
- Oil prices remain heavy on fears of further lockdowns.
- WTI oil remains biased to the upside while above $ 40.
WTI futures for the first month they have risen during the US trading session on Thursday to return to $ 41. The West Texas Intermediate price of a barrel, however, remains slightly negative on the day, having hit a high of $ 42 on Monday.
COVID-19 concerns affect oil prices
Crude oil prices fell back today amid risk-off sentiment as coronavirus cases continue to rise in the US and Europe. Fears about the impact of strict restrictions have dampened enthusiasm Monday following the promising results of the Moderna vaccine.
Beyond that, the conclusions of Monday’s OPEC + meeting, with most producing countries supporting an extension of production cuts beyond January, have failed to cheer up confidence. The market will wait for the full OPEC meeting scheduled for November 30 and December to learn what actions the cartel should take.
WTI prices consolidate above $ 40
From a technical perspective, oil prices are consolidating above $ 40 with technical indicators pointing higher after having appreciated more than 20% in the last two weeks.
On the upside, immediate resistance is at $ 42 (Nov 16 high), $ 43 (Nov 11 high) and then late August highs at $ 43.80. On the downside, the mentioned support levels are $ 40 (psychological level and lows on Nov 13 and 16) and below here, the 50-day SMA at $ 39.30 and $ 37.10 (Nov 5 low).
Technical levels
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