- WTI prices consolidate between $ 41 and $ 42.
- Global demand concerns weigh on WTI longs.
- The market remains cautious with all eyes on the OPEC meeting,
WTI futures for the first month They have moved sideways between $ 41.15 and $ 41.90 on Thursday with limited bullish attempts amid renewed fears about the consequences of rising COVID-19 on global demand.
Oil prices move with all eyes on OPEC
The price of a barrel West Texas Intermediate opened the day on the defensive in the face of new concerns about the impact of COVID-19 on global demand with investors holding their breath ahead of the November 30 OPEC meeting where the world’s top producers They will discuss their plans to reduce current production outages.
News of the rising number of coronavirus deaths in the US, which reached 250,000 on Wednesday, and New York City’s decision to close all public schools have hit risk appetite on Thursday. Similarly, Russia and Japan have reported higher numbers of infections, which has increased fears about oversupply.
On the positive side, US oil stocks posted a smaller-than-expected rise in the week of Nov. 13, according to the Energy Information Agency, which provided initial price support on Thursday.
WTI remains stable above $ 41
From a technical perspective, oil prices are moving sideways with support levels at $ 41 (November 18 low) and below here at $ 40 (psychological level and November 13-16 lows) and the 50-day SMA at $ 39.50. On the upside, immediate resistance is at $ 42 (Nov 16 high) and above here $ 43 (Nov 11 high) and late August highs at $ 43.80.
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