- WTI halts its four-day move higher as the bulls take a breather.
- The growing cases of covid globally reignite concerns about the recovery in demand.
- The rally in the US dollar also limits the rise, the focus is on the stimulus news.
He WTI (NYMEX futures) has halted its four-day upward movement, consolidating near nine-month highs of $ 48.60, as the bulls wait for a new catalyst for the next move.
Black gold follows general market sentiment, which has turned tepid amid Brexit stagnation and current expectations of a potential stimulus deal in United States.
The feeling of risk aversion has induced a general rally in the US dollar, which also weighs on oil prices, denominated in dollars.
Further, the increase in coronavirus cases and new global restrictions once again frustrate the prospects for a recovery in oil demand, which limits the climb, for now.
Germany recorded a record of around 34,000 new cases on Friday, while Australia has imposed border restrictions on states and territories after a new cluster of the virus was found in Sydney.
Though sentiment around the WTI barrel continues to be supported by the vaccine and optimism fueled by the stimulus.
To further support the drop, the latest report from the Energy Information Administration (EIA) showed that US crude inventories fell by 3.1 million barrels in the week of December 11.
All attention remains on the US stimulus news update and Wall Street sentiment for a new trade boost.
WTI technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
