- WTI extends the upside to the $43.00 level on Wednesday.
- Optimism following Biden’s win and COVID-19 vaccine support prices.
- EIA’s weekly report on crude oil supplies comes in on Thursday.
Prices of the barrel of the American reference for the sweet light crude oil remain on the rise and reached the $43.00 mark and slightly above during early trade on Wednesday.
WTI now looks to EIA
Prices of the WTI advance for the third straight session and navigate the area of 2-month tops well above the $42.00 mark per barrel on Wednesday.
Crude oil extends the rally on the back of the renewed and strong optimism among traders, all in response to Pfizer’s announcement of its vaccine earlier in the week. The news sparked a sharp upside in the risk complex and helps to mitigate at the same time demand concerns, as the prospects for global recovery now seem revitalized.
Also adding to the upbeat mood among oil traders, the American Petroleum Institute (API) reported late on Tuesday that US crude oil supplies shrunk by more than 5.1 million barrels during the previous week.
Moving forward, the EIA will publish its weekly report on crude oil inventories on Thursday, as some US markets are closed on Wednesday due to the Federal Veteran’s Day holiday.
WTI significant levels
At the moment the barrel of WTI is gaining 1.54% at $42.43 and faces the next up barrier at 43.75 (monthly high Aug.26) seconded by $48.64 (monthly high Mar.3) and finally $54.45 (monthly high Feb.20). On the downside, a breach of $39.64 (55-day SMA) would expose $36.62 (200-day SMA) and then $33.67 (monthly low Nov.2).
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